ITB Assignment October 2023

Chapter No.
1 Nature of Business
An intangible offering of businesses a business organization that cannot be touched, held
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or stored, we can give it a term like ______ and ______
A Business plans C Services
B Intellectual property D Idea
The RACI acronym stands for __________ though some organizations also include
2 Support (which forms the RASCI Model). These roles must be assigned to specific team
members in order for a project or process to be accomplished.
A Reactions, Accountable, Consulted, Informed,
B Responsible, Accountable, Consulted, Informed,
C Responsible, Accountable, Counseled, Informed,
D Reasonable, Auditable, Consulted, Informed,
Z PLC has a large number of shareholders. The largest is Worm House (WH)- a pension
company. WH owns 40% of A’s share capital, while no other shareholders own more
3 than 8%. However, WH has stated that it is satisfied with the direction of Z PLC and
has no plans to intervene in the company’s affairs unless its dividends fall. If Z PLC
prepare Mendelow’s matrix, which quadrant would WH fall into?
A Minimal effort
B Keep satisfied
C Keep informed
D Fully consider the stakeholder i.e., key player
Mr. Saleem as employees of CFE might be in a position of power within the
organization, perhaps because of special management and organizational expertise that
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they possess. Their position of power in CFE may result in a risk for a business. Can be
termed as _____ and _____ as well.
A Consultant risk C Banker risk
B Key person risk D Brain drain risk
5 Creditors will lend funds to a firm only if they believe ________ and ________
A The business will be able to generate sufficient profits to make the interest and principal
payments of the loan.
B The borrower should be able to repay the debt, with interest, on schedule.
C It has right according to constitution of 1973.
D None of the above
Creditor needs to be ensured that the firm will perform well enough to pay the interest
6 on the loans and the principal (amount borrowed) in the future. Means that the main
concerns of lenders are clear they might ________
A Companies might issue bonds C Company might issue debentures
B Companies issue file of plots D Company can issue T-bills
7 When a firm is initially created, it incurs expenses before it starts __________
A Costs associated with selling a good or service in the beginning
B Its costs incurred may exceed its revenue
C It’s the situation facing the introductory phase of product life cycle
D All of the above
8 The stakeholders in a business organization, whether internal or external, are those
A Who exercise the least influence C Who exercise moderate influence
B Who exercise the great influence D All of these
Which of the following might be included in the areas of public interest and concern
9 related with business organization like Z plc? Given a list which of the activities on
which stakeholders become active?
A Z plc is planning to monopolization of a market by one or a small number of companies.
B Z plc takes care of protection of the environment; ensure reduction pollution, and creating
'sustainable businesses.
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C Z plc is exploiting the consumer through mis-selling and misleading descriptions of
goods.
D Z plc. is running a business in ethical concern by Z plc
Executive directors are involved in the management of the company. Which of the
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following statement is true with respect to their interest?
A Their interest is similar to the interest of non-executive directors, as both have position on
the board of the directors.
B Their interest is similar to the interest of senior executive, who do not have a position on
the board of directors
C Executive directors take up internal leadership roles. They manage the company's
activities and engage in high-level responsibility.
D Non-executive directors assist in monitoring aspects of business activities and provide
objective insights for decision-making.
11 Given are statement related with the shareholders in the company, which one is wrong?
A People who have purchased company's debentures
B People, who have purchased company's shares
C People who receive dividend from company
D People who are owner of the company
Among the given Which one of the most important stakeholders of the business, has a
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direct stake in the company and can significantly affect the performance of the business?
A Government C Bankers
B Suppliers D Employees
13 Who are referred to as stakeholders?
A Those who have interest in the company. C Those who can influence the
B Those who are affected by the business. D company.
All of the above
Ozon-Ozon is an online consumer product seller in America and Europe, following two
statements are given regarding
1) To be Earth's most customer-centric company, where customers can find and discover
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anything they might want to buy online.
2) We strive to offer our customers the lowest possible prices, the best available
selection, and the utmost convenience.
A 1 is mission and 2 is vision C Both are the vision statements
B 1 is vision and 2 mission D Both are the mission statements
________are democratically controlled by their member-owners, and unlike a
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traditional business each member gets a voice in how the business is run.
A Private limited company C Mutual fund
B Partnership D Cooperatives
16 Which of the following factor following factor is involved in entrepreneurship?
A The creation of business ideas. C Making decision by consensus
B Willingness to accept risk D Both A and B
Entrepreneurs are the people who combine the inputs of natural resources, labor,
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and capital to produce goods or services _____________________
A With the intention of making a profit or accomplishing a not-for-profit goal
B With the intention of making a profit
C Put resources are the inputs used to produce output by generating ideas
D All of the above
Human resources are the people who are able to perform work for a business. They may
contribute to production ____________and _____________ Alternatively, they may
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contribute by using their mental abilities, such as proposing a change in the existing
production process or motivating other workers.
A By using their physical abilities, such as working in a factory to construct a product.
B By using their mental abilities alone, such as proposing a change in the existing
production process or motivating other workers.
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C By using their mental abilities, such as proposing a change in the existing production
process or motivating other workers.
D By using their mental abilities & psychometric abilities such as proposing a change in the
existing production process or motivating other workers.
_______remains the most obvious natural resource that is commonly used by businesses
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to produce goods and services.
A Land C Natural labor
B Natural capital D Entrepreneur
Human resource manager of Zafar Textile express human resources as the people who
20 are able to perform work for a business. They may contribute to production by using
their physical abilities. Which of the following may be considered their physical ability?
A Motivating factory workers C Preparing long term plans
B Working in a factory to construct a product D None of the above.
Khanani & Kalia Ltd company has been facing customer complaints which may become
obstacle in their business. They have decided to plan the 'objectives' to deal with this
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problem. Which of the following would be the objective of the company to manage
customer care?
A To inspire and impact the world with dream, purpose, and style.
B Reducing customer complaints by 30% and improving resolution time by one day.
C Reply to customer complaints within 2 business days
D Offering customers, the very best product selection, quality, and value.
A well-written ___________ should be short, simple, specific to the business, leave
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nothing open to interpretation
A Mission statement
B Vision statement
C Both mission and vision statement are descriptive.
D None of the above
A vision statement has more to do with the _________and really describe what an
organization plan. This is more of an inspirational or motivational statement that is
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meant to drive employees and also clearly demonstrate an __________to stakeholders
(customers, investors, etc.).
A Future C Organizations’ goals
B Past D Organizational focus
Business organizations also buy goods and services from their suppliers. Suppliers will
24 usually agree to allow their customers some credit (time to pay) but their main interests
are that
A A customer will pay what is owed and will not become a bad debt
B Customers will continue to buy from them
C Customers will treat them fairly, and deal with them in an ethical way.
D All of the above
__________refers to an individual or entity purchasing products from manufacturers
25 and then selling them directly to customers. By contrast, ________is a person or business
that provides raw materials, parts, and machines to manufacturing units.
A A vendor C An indenter
B A supplier D A stockholder
Major suppliers could exert influence by controlling the supply of a key resource to the
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organization. This results in a for a business.
A Employee strikes risk C A supplier risks
B A distributor risk D Creditor risk
Objectives are derived from the goals of an entity, and are aims expressed in a form that
can be measured, and there should be a specific time by which the objectives should be
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achieved. The objectives should be SMART: Specific/stated clearly M stands for _____
and R stands for ____
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A Measurable C Reliable
B Maintainable D Realistic
Vision is related with _____ and mission is related with _____. A mission statement is
where you are and why you do it, a vision statement is where you are going to be and
28 how you want to get there. While these may seem like soft topics it can be very important
to ensure that the mission and vision of an organization or company's leadership is
clearly conveyed to the people who need to know it.
A Future C Current
B Past D Up coming
A vital feature of managing business like Ever Shine Pvt. Textile Limited is creating
29 'purpose and providing clear messaging to stakeholders. This can be done by creation of
________?
A Sending formal letter to all stakeholder C Updating shareholder on daily basis
B Creation of mission and vision D Sending annual statement of accounts
statement
Organizational goals are _________ that executives set for the company. They
_______input and define the expected output. These goals outline these objectives,
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targets, and results they want to achieve in a given period. They guide operations and
inform business decisions over time.
A General targets C Guide the public
B Guide employee D Specific milestones
On which of the following basis the standard of living among different countries is
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compared? Choose any two?
A Quality of goods which is the priority of the customers
B Factors of production that are the building blocks of business
C Goods and services people can buy with the money they have
D The total value of new goods and services produced within a country's borders
32 A business organization like Anwar plus Bila. Which of the following hierarchy should
have
A Goals and objectives hierarchy C Aims and plans hierarchy
B Management hierarchy D All of the above
Not all companies earn profits, but that is the risk of being in business. There is indirect
33 relationship between risks and profit, the greater the risk is associated with _____.
Choose two
A The lower will be the profit C More profit
B Optimum profit D Greater profit
If a business is not achieving its goals even may incur a loss by not achieving its goals?
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Which of the reasons you think, out of the given
A Employing over qualified human resources
B Inefficient use of resources
C Use of expensive raw material.
D Lack of synergy
___________is used to classify relevant stakeholders based on their power or influence
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and level of interest in a project or entity or organization.
A Power-interest matrix C Power-influence matrix
B Interest-powerful matrix D Authority-Power matrix
36 Which of the following stakeholders have high power and high Interest?
A Investors C Shareholders
B Executive directors D Employees
Non-executive directors bring experience and knowledge to the board that they have
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gained outside the company, and which executive directors often do not have.
A They are external stakeholders, not involves in day-to-day management
B They are internal stakeholders involves in day-to-day management
C
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The non-executive directors usually receive a flat fee for their services, and are engaged
D under a contract for service
They are full time employees like executive directors
Shareholders do not participate in company management and operational issues matter
is related with ____. They leave the management to the BOD. However, they influence
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the decisions of BOD when they feel their interests are threatened and matter is related
with ____.
A Payments to suppliers
B Falling profits and share price
C A proposal to invest in a major project where risk is low
D Separation of ownership from governance
Employees are stakeholders because business decisions often affect them and how they
operate the business. For example, if a business moves to another city or business is
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closed, this can directly affect employees who either need to move with the business
organization or find another job to stay closer to home.
A Employees are significant stakeholders because business decisions often directly affect
B them Employees are important internal stakeholders
C A vested interest in the performance of the business.
D All of the above
Shareholders are stakeholders of the company and are usually investors, seeking to earn
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a return on their investment in the form of _______ and their liability is ______
A Interest C Limited liability
B Dividend D Unlimited liability
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Chapter No. 2 Ownership of Business
Aalliance School network is ___________therefore it does not have to file public
1 financial statements with government agencies or send out quarterly financial
statements to several thousand owners, as the corporations do.
A A company C A public limited company
B A partnership business D A private limited company
A form of business organization in which _________ has at least one general partner,
2 who assumes (unlimited liability, and at least one limited partner, whose liability is
limited to his or her investment in the business.
A General partnership. C Limited liability partnership
B Limited partnership D None of the above
Sole proprietorships may have to pay. on funds borrowed from banks than do large
3 corporations because they are considered greater risk of default due to _______ or
_____.
A Lower interest rate C Increase in cost of barrowing
B Higher interest rate D Fall in the sales & revenue
A sole proprietorship is a non-registered, unincorporated business run solely by one
4 individual proprietor with no distinction between the business and the owner. With
which of the following
A Sole proprietors must be willing to accept full responsibility for business's performance.
B Sole proprietors must also be willing to work flexible hours.
C They are on call at all times and may even have to substitute for a sick employee.
D All of the above
5 Which of the following are not the benefit of sole proprietorship?
A No legal formalities needed to set up as a sole proprietor.
B Any profit made after tax belongs to the owner.
C You have unlimited liability for debts as there's no legal distinction between private and
business assets.
D Your capacity to raise capital is limited.
6 To be successful a sole trader must do which of the following?
A All the responsibility for making day-to-day business decisions is yours.
B He must register his business with the government
C He must exhibit strong leadership skills, be well organized, and communicate well with
employees.
D He must share his profits with the individual if any who manages his business
Business organization activities would collectively lead to the completion of common
7 goals and objectives of an entity operated by an individual or group of people. Which
one is odd out of given activities of business.
A Businesses carry out activities such as producing goods or providing services with the
aim of selling them to customers and making a profit.
B The purpose of business activity is to provide goods and services that customers want, at
a price that they are unwilling to pay.
C A business organization is an entity formed for the purpose of carrying on required
activities to achieve its goals and objectives.
D It can be seen as the process of dividing up activities in an efficient and effective manner
to enable a system of co-operative activities of two or more persons.
People from different backgrounds come to work together; organizations are strongly
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influenced by the people that form them. Matter is related with
A Diversity C Synergy
B Multicultural D All of the above
When entrepreneurs establish a business, they must decide on the form of business
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ownership. There are three basic forms of business ownership: Which one is odd
A Sole proprietorship
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B Partnership
C Corporation or the limited liability company.
D Not for profit organization
Laws and regulations vary between different country, but in certain areas of
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commercial activities such as banking is accepted
A Regulatory requirements C Management regulation
B International regulation D Trade regulation
A club or a society is an association of people united by a common interest or goal. A
service club, for example, exists for voluntary or charitable activities Instead of profit
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and loss account, clubs and societies produce to show surplus/deficit of income over
expenditure
A Income statement C Balance sheet
B Income expenditure accounts D All of the above
12 These are not-for-profit organizations that are partly or wholly funded from _________
A Non-government sources C Charities
B Donors D All of the above
These are _________that are funded by the government to achieve social indicators of
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the country
A Government organizations C Public limited companies
B Public sector organization D Private limited companies
The organizations voluntarily come together to achieve a common economic end
through the formation of a controlled business organization making equitable
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contributions to raise capital and accepting a fair share of risks and benefits. These
organizations are known as______
A Unions C Cooperatives
B Organizations of bankers D Traders’ Associations
Social and sports clubs areknow as non-profit making institutions termed as "clubs and
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societies", the main source of their funding of which is
A Government funding C Public fund
B Subscription D All of the above
Clubs and societies are non-profit based organizations and their purpose brings ther
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members are drawn together
A By common professions C For making profit
B By common class D By common interest
In partnership, dissolution is always difficult because if a partner who owns more than
17 50 % of share of the entity withdraws, dies, or becomes disabled the partnership must
reorganize or end.
A Always difficult to decide who is going to acquire the shares of a leaving partner
B If new person is acceptable as partner
C If new person is well qualified
D If new person is belonging to good family and smart
In contrast of combined knowledge and skills, diversity of partners may result in serious
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disagreements for key business decisions such as ________
A How to run their business, which employees to hire, how to allocate responsibilities, and
when to expand
B How to stop their business, which employees to fire, how to allocate charities and
benevolence
C Diversity in personalities and work styles can cause clashes or breakdowns in
communication.
D Similarity in personalities and homogeneity in work styles can cause clashes or
breakdowns in communication.
In sole proprietor liability is unlimited and debt is paid from liquidation of personal
19 assets of entrepreneur due to this it is considered that there can be greater risk of
default. Thus, before borrowing he has to his personal assets
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A Pledged C Barrowed
B Sale D Liquidated
In partnership the funds can be raised easily in spite sole proprietorship because
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partner's combined financial strength also increases the firm's ability to raise funds
A True B False
A limited partnership has__________, who assumes unlimited liability, and__________,
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whose liability is limited to his or her investment in the business.
A At least two general partners C At least one general partner
B No requirement of limited partner D At least one limited partner
In limited partnership, usually the general partner receives a larger share of the profits
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after the limited partners have received their initial investment back.
A True B False
In an entrepreneurial structure of sole proprietorship becomes physically or mentally ill
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or dies, the business may come to an end. This means there is _______
A Lack of continuity C Lack of flexibility
B Lack of growth D Lack of rest
As sole proprietorship there is unlimited liability, hence in case of nonpayment of debts
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sole proprietor has to pay liability from his _______
A Sale of native land C Personal assets
B Sale of homeland D Banker’s assets
Despite of convenience in dissolution in sole proprietorship which of the following factor
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is problem in dissolution of business.
A Legally report for business close C Financial obligation
B Reporting to tax authority D Loss of image
The Securities and Exchange Commission of Pakistan, it confirms the laws and
26 regulations only apply to corporations that issue stock. But in case of sole proprietor the
laws are very
A Relaxed C Rigid
B A few D Complex
27 Sole proprietorships is given greater flexibility, why?
A Sole proprietor is responsible to make decisions himself
B Sole business proprietor easily transfers his
C The degree of expansion of business is high
D All of the above
J and K are brothers. J manages K's business and is not entitled to any share of
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business loss. This is the example of what kind of organization.
A Sole proprietorship C Partnership
B Mutual fund D Limited partnership
There is separation of ownership and management and it involves placing the
29 management of the firm under the responsibility of professionals who are not its
owners. Matter is related with
A Cooperative C Sole proprietorship
B Public limited company D Partnership
A company, also known as a corporation, is a legal entity, created under the
government regulations, whose assets and liabilities are separate from its owners. As a
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legal entity, a corporation has many of the rights, duties, and powers of a person, such
as the _________ Which one is wrong
A Right of ownership C Right of friendship
B Right of transfer of ownership D Right of image and brand
A private limited company that needs more money to expand or to take advantage of
31 opportunities may have to obtain financing by “_________”. becoming a public limited
company by selling stock so that it can be traded in public markets.
A Coming to public C Call to public
B Going public D Announce to be public
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A sole proprietor does not have discuss his plans with other individuals, hence, has an
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advantage of ________.
A Security C Secrecy
B Sincerity D Seniority
Many successful sole proprietors had previous __________ in which they are competing,
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perhaps competitor's firm. as employee in the
A Work experience in the market C Understanding of environment
B Exposure of market and business D All of the above
A private limited company that needs more money to expand or to take advantage of
34 opportunities may have to obtain financing. Through an__________, that is, becoming a
public limited company by selling stock so that it can be traded in public markets.
A Initiated Public Offering (IPO) C Initial Public Offering (IPO)
B Initial Power Offering (IPO) D Initial Public Ownering (IPO)
In order for shareholders to hold accountable the director of the company for the
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financial performance, the companies ________ and ________
A Hold monthly board meeting C Produce annual reports and accounts
B Publish minutes of the meetings D Follow corporate governance principles
Which of the following would a non-executive director of a company charge against
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services?
A Get shares of the company C A fixed fee or remuneration
B Share in profit D A permanent salary
Calum, Heidi and Jonas are partners in Zip Co. Calum is dealing with all business
activities and Heidi supports him in all this. While Jonas offers only one million to
37 invest in the company and she is doing her job as per routine. Now Zip Co. has gone
bank corrupt. Jonas is of the opinion that she is not liable or responsible for all this.
What is your opinion? In regard of liability and nature of partner.
A Jonas is liable C Jonas is limited partner
B Jonas is partially liable D Jonas is not liable
38 A local grocery store and a local clothes store is generally example of _______
A Limited liability company C Multi-national company
B Partnership D Sole proprietorship
39 Identify the Not - For – Profit organization out of given list
A Public sector organization C Club and societies
B NPOs or NGOs D All of the above
Which of the following is not an advantage of having non-executive directors on the
40
company board?
A They can provide a wider perspective than executive directors.
B They provide reassurance to shareholders.
C They may have external experience and knowledge which executive directors do not
possess.
D They have more time to devote to the role.
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Chapter No. 3 Organization of Business
Choosing the wrong structure creates tensions between employees and managers, which one
1
is wrong?
A Allows inefficient work practices to flourish
B Reduces company profitability.
C Due to pleasurable environment strong teams are made
D Raise conflict between employees
An organizational structure is the formal arrangement within an organization that defines
how activities and tasks are formally divided and how processes and information would flow
2
within this structure in order to achieve the goals and objective of an organization. The
purpose of having an organizational structure is that it: which one is wrong?
A Divides work to be done into specific jobs and departments.
B Assigns tasks and responsibilities associated with individual jobs.
C Clumsiness diverse organizational tasks.
D Clusters jobs into units
A _________groups together people who have comparable skills and perform similar tasks.
This form of organization is fairly typical for small to medium-size companies, which group
3
their people by business activities: accountants are grouped together, as are people in
finance, marketing and sales, human resources, production, and research and development.
A Divisional organization C Functional organization
B Geographic organization D Matrix organization
4 In the worst case an incorrect management structure can lead to_______.
A Company closure C Only hurt image
B Growth of company D Cause short term loss
There are a number of advantages to the functional approach. The structure is simple to
5 understand and enables the staff to___________; everyone in the marketing group would
probably have_______________.
A Specialize in particular areas C Similar interests and expertise
B Diversify in particular areas D Dissimilar interest and skills
Buick, Cadillac, Chevrolet, and GMC. Each department has its own research and
6 development group, its own manufacturing operations, and its own marketing team.
Working as
A Functional organization C Product divisions
B Matrix organization D Geographic divisions
There are advantages and disadvantages associated with divisional organizations. Which
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two are not the disadvantages
A Divisional structure usually enhances the ability to respond to changes in a firm’s
environment.
B Services must be duplicated across units; costs will be higher.
C Some companies have found that units tend to focus on their own needs and goals at the
expense of the organization as a whole.
D Organizations more focus on functions rather products
A __________is a temporary or permanent collection of geographically dispersed
8 individuals, groups, organizational units, or entire organizations that depend on electronic
linking in order to complete the production process
A Cybernetic organization C Virtual organization
B Closed organization D Internet Organization
A business organization practice in which a company hires a third party to perform tasks,
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handle operations or provide services for the company.
A Technology sharing C Outsourcing
B Work sharing D Downsizing
10
The stationery and printing company S Co. has recently upgraded its computers and
10 printers so that more production has become automated. Majority of middle managers will
now be made redundant. This is known as:
A Downsizing C Outsourcing
B Delayering D Degrading
11 Which of the following statements regarding the entrepreneurial structure are correct?
A It usually allows for defined career paths for employees
B It often enjoys strong goal congruence throughout the organization
C It can normally cope with significant diversification and growth
D Control within the organization tends to be good
12 Which of the following is a disadvantage of a functional structure?
A Specialists feel isolated C Lack of economies of scale
B Empire building D Weak communication
Softstance Ltd is an organization that manufactures tissue paper. The business is organized
13 into four main departments: finance marketing production and administration. What type
of organization structure does softness follow?
A Divisional C Matrix
B Functional D None of the above
Goderage Pvt. Ltd is an organization that manufactures many goods. The business is
14 organized into four main departments: Home accessories, Heavy mechanical products,
Health care, Automobile unit. What type of organization structure does softness follow?
The organization structure design keeps open communication between teams and can help
15 companies create more innovative products and services. Using this structure prevents
teams from needing to realign every time a new project begins.
Bora Pb. Limited assign employees into self-contained units according to: the particular line
16 of products or services they produce. the customers they deal with. the geographical area
they serve.
A Functional C Matrix
B Virtual D Divisional
A ____________ is one that has a formal, hierarchical structure with clearly defined roles
17
and responsibilities. The basic thought behind is organization is a system.
A Informal Organization C Mechanistic Organization
B Organic organization D Friendship based organization
A ________________is a government agency or commercial business with a heavily enforced
18 chain of command and tightly regulated operating procedures. It's an administrative system
that relies on policies, rules and hierarchy in both public and private sector environments.
A Informal Organization C Bureaucratic Organization
B Organic organization D Friendship based organization
Which of the following structures are results in a potential loss of control over key operating
19
decisions?
A Matrix C Product divisions
B Entrepreneurial D Geographic divisions
M plc is a large company that operates in country G. It manufactures several different
products, each of which is highly complex and extremely specialized. Its sales have grown
20 significantly over the last several years with each of its products producing a roughly equal
number of M’s overall revenue.
Which organizational structure is most likely to be appropriate for M?
A Geographic C Functional
B Divisional D Entrepreneurial
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The term 'networking' is most associated with teams and projects what type of
21
organizational structure?
A Functional C Matrix
B Entrepreneurial D Divisional
Conflicting demands over allocation of human resources is most likely to be a disadvantage
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for which type of organization structure?
A Entrepreneurial C Divisional
B Matrix D Geographical
Zayota Pvt. Ltd is a manufacturing company. The work undertaken is simple, meaning that
each manager looks after a large number of employees. Because of this, there are relatively
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few levels of management within the company.
Which of the following is correct with regards to the structure of Zayota Pvt. Ltd?
A Wide span of control, short scalar chain C Wide span of control, long scalar chain
B Narrow span of control, short scalar chain D Narrow span of control, long scalar chain
Consider the following statements:
1) The scalar chain shows the number of people for whom a manager is directly responsible.
24 2) A business with highly skilled, motivated members of staff will tend to have a wider span
of control than a business with de-motivated employees.
Which of these statements is/are correct?
A 1 only C Both
B 2 only D Neither
The line of authority relates to _______ and ____________ is number of employees answer
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to one superior official. Which phrases completes the sentence?
A Span of control and chain of command C Number of managerial levels and chain
B Ownership and control D Scalar chain and span of control
26 Which of the following is the correct definition of the term 'span of control'?
A The number of employees reporting to one manager
B The number of managers to whom one employee reports
C The number of levels in the hierarchy
D The number of employees at each level of the organization
If a managerial structure has many levels of management, is it likely to have a narrow or
27
wide span of control at each level of management?
A Narrow C Both
B Wide D None of the above
28 A narrow span of control is likely to lead to which of the following.
A A tall management structures
B A flat management structures
C A short scalar chains
D A reduction in the number of levels of management
An informal organization structure can arise in an organization due to ________. Which one
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of the following does not complete the sentences?
A Friendship C The grapevine effects
B Personal relationships D Common interests
Which of the following statement is/ are true?
1) An informal organization exists with every formal organizational
30 2) The objectives of the informal organization are broadly the same as those of the formal
organization
3) A strong, close-knit informal organization is desirable within the formal organization.
A Statement 1) only C Statement 2) and 3) only
B Statement 1) and 3) only D Statement 3) only
Which of the following is NOT a likely additional cost to an organization caused by
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decentralization?
A Additional training costs are often required in a decentralized organization.
B Duplication of roles, leading to higher personnel costs
12
C Extra costs of gathering information from various sources and locations.
D Lost sales due to lack of local knowledge and expertise
32 A multinational company is likely to have a ______ structure. Fill in the blank with:
A Centralized C Virtual organization
B Decentralized D Outsource all of its functions
Stark Limited is a company that currently manufactures metal tubing. It has recently
decided to open a series of new manufacturing plants within country H which it believes will
33
help it to break into the European market.
Which level of planning would this decision relate to?
A Functional C Tactical
B Strategic D Operational
One World Limited has an organizational structure focused on its different line of
businesses such as Consumer Products, Industrial Consumers, Retail Business and
34
Customer Services. What type of structures below are best describes One World Limited’s
structure?
A Matrix Organization C Divisional Organization
B Narrow Organization D Customer Divisions
35 Which of the following is NOT true for a Centralized decision making?
A Decisions by management are more likely to be taken with regard for the corporate
objectives of the entity as a whole. There is a very strong argument in favor of making
strategic decisions centrally.
B Decisions by management should be coordinated more effectively if all the key decisions are
taken centrally.
C In a crisis, it is easier to make important decisions centrally
D Centralized decision can be called better local decisions
Given are the benefits of centralization:
1) Reduced training costs within the organization
2) Better local decisions due to local expertise
36 3) Better motivation of staff due to delegation
4) Reduction in suboptimal behavior
Which of these are advantages of the centralization of decision-making within an
organization?
A 1 and 2 only C 3 only
B 1, 2 and 3 only D 1 and 4 only
37 Which of the following stands true about the Chain of Command?
A Chain of command tells how many workers can work under a manager
B Chain of command makes an organization too complex
C Chain of command cannot exist in a functional organization
D Chain of command clarifies who reports to whom within the organization.
A ___________________organization groups together people who have comparable skills
38
and perform similar tasks. Fill in the blank.
A Matrix C Geographic
B Functional D Complex
According to the Management Planning Triangle, there are three levels of planning within
39 an organization. Which level of planning is usually undertaken by the organization's junior
management?
A Operational C Strategic
B Tactical D Applied
40 Which of the following does not affect the amount of decentralization that occurs in a firm?
A Management style & leadership C Size of the organization
B Spread of the organization D None of the above
13
Chapter No. 4 Sources of Business Finance
Financial management is the _______of managing a company’s funds so that it can meet
1
its goals and objectives
A Art C Both
B Science D None of above
To achieve the goals and objectives of a business, financial management is critical to
2 decide which type of financing is required to maximize shareholders’ value. This could
be achieved through ________.,
A Debt C Mix of debt or equity
B Equity D Public finance
To achieve the goals and objectives of a business, financial management is critical to
3 decide which type of financing is required to maximize shareholders’ value. This could
be achieved through ideal source/s in the __________.
A Short-term C Short-term and long-term financing
B Long-term financing D Medium term
The ultimate financing decision should be based on ________ and _______for
4
shareholders.
A Optimal structure of Money for Business C Optimal capital structure
B Benefit & Welfare D Value maximization
Any company, whether it’s a small grocery shop or a large fast moving consumer goods
5
company, needs funds to operate _______ through sales,
A To make money C To make goodwill only
B Funds inflow D Funds outflow
To make a successful business a company must ________on inventory and supplies,
6
equipment and facilities, and employee wages and salaries.
A First spend money C Make investment first
B Funds outflow D All of the above
For businesses finance is ______ of all companies. It may not be as visible as marketing
7 or production, but optimal management of a company’s finances is just as much a key to
the company’s success.
A Key Performance Indicators C Both of the above
B Critical Success Factor D None of these
For a particular aspect of business related with achieving a desirable outcome for
8 entity's money and finances, the role of ________ is also critical for the overall success of
a company
A Marketing manager C Financial manager
B Account manager D Sales manager
Knowledge of accounting and finance plays a critical part in understanding the concept
9 of financial management. A company’s financial statements such as _______________are
a key source of information for financial management
A Balance Sheet C Cash Flow Statements
B Income Statement D All of these
_________is a financial statement that contains details of a company's assets and
10
liabilities at a specific point in time.
A Balance sheet C Budget
B Cash flow statement D None of the above
Mr. Atif has just started his first job in an accountancy department. A qualified senior
11 member senior member of staff explains to him what the main aim of accounting is.
Which of the following g options is the correct aim of accounting?
A To maintain ledger accounts for every asset and liability
B To provide financial information to users of such information
C To produce a trial balance
D To record every financial transaction individually
14
12 Which of the following would be classed as a book of prime entry:
A Bank statement C Sales day book
B Trial balance D Income statement
Mr. Saleem is considering creating a financial accounting department within her
13 business, but is unsure of what such a department would actually do. Which of the
following would usually be prepared by a financial accounting department?
A Cost schedules C Variance analysis
B Statement of cash flows D Tax calculations
14 Which of the following is not one of the purposes of budget?
A Responsibility for expenditure C Motivation for upcoming assignment
B Co-ordination of staff D Costing of units
15 Working capital is calculated as:
A The excess of current assets over current liabilities
B The excess of bank borrowings over current assets
C The excess of long -term liabilities over short-term liabilities
D The excess of fixed assets over current assets
16 Financial managers focus on ______and_____.
A Accounting planning C Financial planning
B Money leaving management D Cash flow management
Following is a basic structure of a Balance Sheet, in a report format, which shows how
17 the _____or ____and the uses of finances (assets) of a
company are summarized on a specific date such as at the year-end
A Sources of disbursement C Sources of finances
B Course of outgoes D Liabilities and shareholders’ equity
In accounting, ________is any asset which can reasonably be expected to be sold,
18 consumed, or exhausted through the normal operations of a business within the current
fiscal year or operating cycle or financial year.
A Long term assets C A current asset
B Solid assets D A liquid asset
• Cash & marketable securities
• Cash equivalents,
19
• Accounts receivable, and inventory
These are the _____ assets
A Capital assets C Current assets
B Long-run assets D Short-run assets
Which of the following statement regarding management and financial accounting is/are
correct?
1) Financial accountants usually produce information for the organization’s external
20
stakeholders.
2) There is no legal requirement for companies to have a management accounting
function.
A 1) only C Both
B 2) only D Neither
21 The total liabilities of companies are included _____________. Which one is odd?
A Shareholder’s equity C Long-term loans
B Capital and retained earnings D Bonds payable
The key difference between equity and liabilities in business is that equity represents the
22 _____that shareholders have in a company, while liabilities are debts or obligations that
a company_______.
A Ownership stake C Owes to others
B Rental stake D Company owes for it
23 Equity is calculated by _______
A Subtracting liabilities from assets.
15
B Subtracting assets from liability
C Subtracting obligations owes to others from assets
D All of the above
An important aspect of financial management is the choice of financing methods for a
24
company’s assets. It needs to create a balance between ____ and _____
A Equity and from debt
B Borrowed funds in the long-term capital structure
C Funds raised through real estate assets
D All of the above
An important aspect of financial management is the choice of financing methods for a
25
company’s assets. It needs to create a balance between ____ and _____
A Short-term C Weekly term
B Long-term funding D Quarterly term
26 They must never lose sight of the primary goal of the financial manager.
A To maximize the value of the company to its owners,
B Better image of company which measured by the share price or value of stocks.
C Keep focus on long term financial needs as well as current financial need
D All of the above
27 Finance Manager deal with preparing the financial plan for _______.
A Project’s revenues, expenditures and financing needs over a given period.
B Investment & Financing
C Spending funds on opportunities of business & raising funds
D All of the above
The risk-return trade-off is a theory of investing that states that an asset's
28
potential_______. Which one is wrong
A Return will be proportional to the level of risk the investor takes
B Risk-return tradeoff states that the potential return rises with an increase in risk.
C Individuals associate low levels of uncertainty with high potential returns, and high levels
of uncertainty or risk with low potential returns.
C All of the above
Organizations do aim to use the available revenues and profits from ongoing ______such
29
projects, it is often___ and ___.
A Business operations to fund
B More appropriate to seek external lenders or investors
C More appropriate to seek internal lenders or investors
D Seek government funding
Equity capital is funds paid into a business by investors in exchange for ______or
30
______.
A T bills C Common stock
B Euro bonds D Preferred stock
31 Equity financing contains following characteristics except one _______
A Need to pay dividend
B In case of less earning dividend can be postponed
C No change in ownership
D By holding dividend, equity increased
32 Debt capital associated with following, with one exception.
A Interest to pay
B Time bounded, if not able to pay results in default
C Change in ownership
D Service charge paid on loan is tax exempted
33 The drawback of borrowing money is the _____________.
A Interest that must be paid to the lender, where a failure to pay interest or repay the
principal can result in default or bankruptcy.
B The interest paid on debt is typically tax-deductible
16
C Costs less than other sources of capital
D All of the above
The benefit of equity funding is that investors do not require interest payments like
34
bondholders do. The drawback is that
A Further profits are divided among all shareholders (including new ones) in the form of
dividends.
B Shareholders have voting rights on important matters of the organization, which means
that the company’s management control is weak or forfeited, due to increase in
C shareholders.
Retaining earnings in the business by not fully distributing the profits to shareholders as
D dividends
Equity financing allows one to repay as per convenience as long as the instalments are
regular and timely and buy back the share sold in the market
35 ________ is the money available to meet your current, short-term obligations.
A Working capital C Social overhead capital
B Investing capital D None of these
________ is an amount of money given to an organization to achieve its business
36 objectives. The term also refers to the acquisition of tangible long-term assets, such as
manufacturing plants, real estate, and machinery
A Working capital C Social overhead capital
B Investing capital D Intellectual capital
37 Short term finance refers to financing needs for a small period normally _______
A Less than a year C Less than one quarter
B More than one year D Less than six months
Short-term financing is shown as a current liability on the balance sheet. It is used to
38
finance ____. Which two are wrong
A Current assets C To purchase plant
B Support operations. D To purchase commercial building
The primary purpose of obtaining long-term funds is to finance capital projects and
39
carry out operations on a _______. Which one is wrong?
A Expansionary scale and expansionary scale
B Modernization, expansion, and diversification
C Provide quick cash when your cash flow is lacking
D Development of business operations
40 Some objectives of long-term finance may be to __________.
A Purchase new asset or equipment & finance the permanent part of the working capital
B Enhance the cash flow in the company & invest in research & development operations
C Construct or build new construction projects & develop a new product
D All of the above
Long-term financing sources include both _____. Choose an option to pick the right
41
option.
A Debt and equity C Both of the above
B Borrowing and Ownership. D None of the above
42 Equity financing comes either from_______. Choose an option to pick the right option.
A Selling new ownership C Both of the above
B Retaining earnings D None of the above
The term ‘debt finance’ is used to describe a type of finance where the borrower: given
43
are the characteristics of debt finance, which one is wrong?
A Receives funds, either for a specific period of time or possibly in perpetuity
B Acknowledges an obligation to pay interest on the debt for as long as the debt remains
outstanding;
C Agrees to repay the amount borrowed when the debt matures
D Share profit till reaches the end of the borrowing period
44 Which one is not the example of debt financing
17
A Term loans C Bonds
B Finance lease D T-bills
Bonds are long-term debt instruments involving two parties- the borrower is the buyer
45
and the lender is the seller.
A True B False
46 The borrower through the bonds can be the_____.
A Government C A corporation
B A local body D All of the above
Regarding financing through bonds, the loan barrowers generally _____and are ______.
47
Select correct options to fill in the blank.
A Provide a fixed share of profit at periodic intervals
B Provide fixed interest payments at periodic intervals
C Redeemable at a predetermined date in future.
D Declare invalid at a predetermined date in future.
48 A bond certificate is issued as proof of the ____. Choose correct option?
A Responsibility C Obligation
B Commitment D All of the above
Bonds are normally issued against ____ and are therefore a highly secured form of
49
____finance. Choose options to fill in the blank
A Collateral C Long term
B Breach D Short term
The issuer of a bond must pay the buyer_______, stated as the coupon rate on a regular
50 schedule. The issuer must also ____ the bondholder the amount borrowed called the
principal or par value at the bond’s maturity date (due date).
A A fixed amount of interest C Pay
B A fixed amount of profit D Receive
51 Which one is not advantage of bonds?
A Fixed-rate bond pays a regular interest rate or coupon rate return to investors; therefore,
provide a predicated form of cash out flow needs for an issuer.
B Considered less risky comparing to equity (stocks) for holder and have specific maturity
period of bonds.
C Fixed-rate bonds may have interest rate risk exposure in environments where the market
interest rate is rising.
D Most bonds are universally rated by credit rated agencies providing an independent source
of analysis
52 Give are the advantages of bonds. Which two are wrong?
A Convertible bonds can be converted to equity shares after a specified period, making them
more appealing to investors.
B In the event of a corporation's bankruptcy, the bond is paid before common stock
shareholders. Less risky than shares.
C Provide a medium- and long-term source of financing along with short-term refinancing
risk.
D Expensive form of financing comparing to bank debts for higher credit rating issuers.
53 Which one is not disadvantage of bonds?
A Creditworthiness is important when considering the chance of default risk from the
underlying issuer's financial viability.
B Bonds may have inflationary risk if the coupon rate does not keep up with the rate of
inflation.
C Most bonds are universally rated by credit rated agencies providing an independent source
of analysis
D Creates a commitment of cash payments – interest and principal – therefore a liquidity
risk.
18
A ______is another way of providing finance, where effectively a leasing company (the
54 lessor or owner) buys the asset for the user (usually called the hirer or lessee) and rents it
to them for an agreed period.
A Operating lease C Finance lease
B Renting lease D Usage lease
In an __________ agreement, the ownership of the property is retained during and after
55
the lease term by the lessor.
B Acquisition lease D Ownership transfer lease
Finance Lease is more widespread in the acquisition of assets as ___ and ____which
56
become obsolete quicker because of rapid development in technology in the sector.
A Computer’s equipment C Durable and stable value equipment
B Electronic equipment D Long life and consistent value
equipment
A _______ is a contract that permits the use of an asset and transfers ownership after the
57
lease period is complete, and the lessor meets all other contract obligations.
An _______is a contract that permits the use of an asset without transferring the
58
ownership rights of said asset.
B Acquisition lease D Ownership transfer lease
The ____ is the type of lease wherein the lessor transfers all the risks and rewards
(control) associated with the asset to the lessee before the lease agreement expires. The
59
ownership could be transferred at the expiry of the lease agreement with mutually
agreed terms
60 It important for a business while making the leasing decision to compare ____or ____.
A The cost of leasing the asset with the cost of owning the same
B The cost of owning of the asset with the cost of leasing the same
C The cost of leasing the asset with the feasibility plan.
D None of the above
61 Advantages of financial lease are ____. But one is a mismatch, which out of them?
A The lessee can use the asset without investing company funds in the asset.
B The cost is spread over monthly installments rather a large upfront investment.
C The rental cost is fixed over a specific period, even if interest rate rises.
D The repair work is the responsibility of the lessor.
Student of PRC-5 usually confused between the term Lessee and Lessor, if you are not
62
one of them, identify the incorrect options?
A The lessee is a landlord and the lesser is the tenant
B The lessee is a tenant and the lesser is the landlord.
C The lessee is the temporary occupant of the property, and the lessor owns the property in
which the lessee is staying.
D None of the above
There are certain caveats which need to followed for finance lease such as maintaining
63
certain mileage for an auto, overall maintenance of the leased asset, current ratio.
A True B False
64 Which is not a disadvantage of Lease Financing?
A Lease agreement is secured against the asset. In case of non-payment, the asset may be
repossessed.
B Customized repayment structures are available, tailored to match a company’s cash flow
patterns.
C Non-payment can negatively affect the credit rating of both the business and guarantor.
19
D The legal ownership remains with the finance company
65 In which of the following is the responsibility of repair is on the lessee?
Which of the following is the contract of lease can be terminated easily and without any
66
penalty?
In which of the following lease agreement the economic life of the asset is considered
67
considerably lower than its actual life.
1) The lessee is responsible for insuring and maintaining the equipment, in addition to
the periodic lease installment
68
2) The cost of insurance and maintenance of the equipment is included in the periodic
lease installment within the designated term and usage.
A 1 is operating lease and 2is finance lease C Both are operating lease
B 1 is finance lease and 2 is operating lease D Both are concern with finance lease
________enables a company to align its capital structure with its strategic goals,
69
affording the business more time to realize a return on an investment.
A Short-term financing C Medium term financing
B Long-term financing D Volatile financing
70 The _________better coordinates with the typical lifespan of assets purchased.
A Maturity associated with long-term financing
B Maturity associated with short-term financing
C Maturity associated with modern-term financing
D None of the above
A company can benefit from having a _____relationship with the same investor
71
throughout the life of the financing
A Temporary C Long-term
B Short-term D Medium-term
With the right investor, companies stand to gain from a _____ relationship and
72
partnership, in addition to ______. Choose to options
A Long-term C Ongoing support
B Short-term D Contingency support
_______fixed-rate financing minimizes the refinancing risk that comes with time-to-time
73 debt maturities, due to its fixed interest rate, thus decreasing a company’s interest rate
and balance sheet risk.
_______ financing provides greater flexibility and resources to fund various capital
needs, and reduces dependence on any one capital source. It also enables companies to
74
spread out their debt maturities. Generally, long-term financing has relatively lower
interest rate.
75 Which one of the disadvantages is not related with long-term finance
A Long-term finance may come with certain conditions or regulations such as maintaining
certain mix of capital structure, and level of current ratios.
B Due to the higher finance and regulations involved, long-term finance may also need
additional monitoring and control to ensure proper operations.
C More people qualify for this type of loans. This leniency is what brings higher interest
rates.
D None of the above
20
Companies can raise equity capital externally by issuing new shares for cash, but the
76
opportunity to do so is much more restricted for __________.
A Private companies than for public sector
B Private companies than for public companies
C Private companies than for government owned companies
D Public companies than for private companies
The main difference between a private vs. public company is that the shares of a public
77 company are traded on a stock exchange; while a private company’s can sale their shares
through banks.
A True B False
They can sell shares privately to investors but it is usually ____or ___who are willing to
78
put cash into equity investments in private companies.
A Very easy to find investors C Difficult to find investors
B People run to invest in the private D A small segment is interest to invest
company
79 The existing owners of a private company ___or ___
A Might not have enough personal capital to buy more shares in their company.
B Existing shareholders are having a limited source of new capital
C Existing shareholders are real estate’s investor they have too much capital to invest
D Existing shareholder are political figures have too much influence to collect money
80 Public companies may offer their shares to________ and ______
A To the general public.
B To the specific group of people who are owners of the business
C Arrange for their shares to be traded on a stock market
D Arrange for their shares to be traded on a goods market
81 The stock market can be used as a market for _____ and _______
A Issuing new shares for cash,
B Secondary market where investors can buy or sell existing shares of the company,
C Hedging market where public can by share in advance of their issue
D Forward market for acquisitions and mergers
A _____ is the aggregation of buyers and sellers of stocks, which represent ownership
82
claims on businesses; these may include securities listed on a public stock.
A Stock market C Share market
B Equity market D All of the above
______is a type of tradable asset, or security, that equates to ownership in a company. If
83 you own this type of stock in a company, you have the right to vote on things like
corporate policies and board of director decisions
A Preferred stock C Common stock
B Capital stock D Intellectual stock
Issuing new shares for purchase by the general investing public: this is called an initial
84
public offer or an IPO. Means ___
A Initiative Paused Offering C Initial Public Offering
B Initial Power Offering D Initial Public Owning
Issuing new shares to a relatively small number of selected investors: this is called a
85
_____ of shares. Select two options.
A Public Placing C Placing
B Spot Placing D Private Placement
86 Issuing new shares to existing shareholders in a ‘rights issue’. Which means ____
A An invitation to existing shareholders to purchase additional new shares in the company.
B This type of issue gives existing shareholders securities called rights.
C With the rights, the shareholder can purchase new shares at a discount to the market price
on a stated future date.
D All of the above
21
There is __________raised through share issuance. When the company obtains debts, it
87 has to pay high interest and make a commitment for fixed periodic payments. On the
other hand, the company has ________to shareholders
A Commitment to pay back C No commitment to pay back the funds
B Rigidity to pay dividend D Flexibility to pay dividend
About the shared equity the company can use the funds obtained through share capital
88 in_____, however, for debts there may be conditions imposed by the creditors to ____.
Choose right option for each of the blank spaces.
A Both can be used flexibly C Any manner
B Both can only use for specific purpose D Use it for specific purpose.
89 Investors find companies financed through_________.
A Shares more attractive than companies financed with debts
B More attractive than companies financed with debts
C It signals market confidence on company’s growth strategies and management leadership.
D All of the above
Private companies cannot offer their shares for sale to the general investing public, and
90 shares in private companies cannot be traded on a stock market but can be traded to
government owned institutions directly.
A True B False
22
Chapter No. 5 Information Systems
A system that is used to effectively plan the use of a manufacturer's resources. It enables
1 manufacturers to develop a precise production schedule for the future that minimizes
costs and maximizes the use of the resources available at their disposal.
A Enterprise Resource Planning C Human Resource Planning
B Manufacturing Resource Planning D Transaction Processing System
At the initial level of information systems is an information recording system, which
2 generate initial summary data collected by _______to produce both regularly scheduled
and special reports.
A Database C EIS
B DBMS D TPS
Customer support is often provided in other countries where wage rates are lower. These
3
are example of _______ and ________
A Call centers C Customer advisory centre
B Outsourcing D Customer profile to maintain
4 Which one of the following distinguishes the WAN from LAN?
A LAN exist under collective or distributed ownership and management covering long
distances, whereas WAN covers small area and owned by a single person.
B Setup costs are typically higher and maintaining a LAN is more expensive whereas WAN
is more cost effective and has low maintenance cost.
C There is high data transmission error in WAN, in contrast there is relatively low data
transmission errors in LAN.
D All of the above
Out of given, which of the following automates routine and tedious back-office processes,
5
order processing, and financial reporting?
A MSS C TPS
B DSS D EIS
A system does interact therefore the environment will affect the system and the system
6 will affect the environment. All businesses, social and information systems are examples
of_________.
A Closed system C Semi-open system
B Semi-closed system D Open system
7 Which of the given is not the features of Deterministic System?
A Use predetermined rules C Giving predictable outputs
B Have predicted operations D Next state is unpredictable
Batch processing is the collection of a group of transactions over a period of time, and
8
their processing of ____ and ___jobs at any single time as
A Different C Dissimilar
B Similar D Homogeneous
9 In DSS, user inputs queries and variables for the model through ______
A Search engine C User interface
B Search bar D None of the above
A software which the qualifications and features of application typically source code is
10
kept hidden, unlike open-source systems, work and activate it from itself we can called it
A An open system C An isolated system
B A closed system D None of the above
An information system which is used analyzes large amounts of data and presents an
11
organization with the best possible options available.
A MSS C TPS
B DSS D EIS
12 Which is not correct related with probabilistic system
A Assign a probability to future events
23
B Their behavior is less easy to predict ¯ Most businesses are examples of probabilistic
systems
C When business sales forecast, it will try to predict sales based on past evidence.
D In effect the business tries to change after the event has occurred
Batch processing is the method computers use to periodically complete high-volume,
13 repetitive data jobs. this type of processing is associated with the _____ centralized type
systems.
A Super C Database
B Mainframe D None of the above
14 Which of the following is the disadvantage of batch processing?
A Often delays between when a transaction is made and when the master file is updated and
the output generated.
B Management information is often incomplete due to out-of-date data.
C Often master files always kept offline therefore access may not always be available
D All of the above
Online processing refers to equipment that operates under control of the
15
___________through some kind of terminal.
A Distributed computing but typically from a different location
B Central computer but typically from a different location
C Central computer but typically from a same location
D Stand along computer but typically from the same location
Real time processing is the processing of _________as they occur without the need for
16
batching them together.
A Class of transactions C Dissimilar transactions
B Similar transactions D Individual transactions
17 Which of the following is the disadvantages of real time processing?
A Information is more upto date therefore providing better management information
B Increase ability for data to be online
C Increased hardware capacity which increases costs
D Require potential hardware capacity
Among the given information systems, which of the following uses the internal master
18 database to conduct high-level analyses that help managers make timely and better
decisions?
A TPS C MSS
B DSS D EIS
If dealing with following cases
1) Weekly/monthly billing.
19 2) Payroll.
3) Inventory processing.
Which processing method you will prefer?
A Real time processing C Online processing
B Batch processing D Centralized processing
The human brain, biological populations, as well as human society are the example of
20
____
A Probabilistic system C Deterministic system
B Cybernetic system D High tech system
21 Which of the following is a reasonable drawback of using a database?
A Any system failures may cause widespread disruption and loss of information
B It is difficult for two people to use it at the same time
C The quantity of information is limited to just a few thousand records
D Costs of setting it up often outweigh the benefits of using it
In some cases, where immediate processing is crucial to make the system work properly,
22 say if you are dealing with
1) Data streaming,
24
2) Radar systems,
3) Customer service systems,
4) Bank ATMs,
Which processing method you prefer?
A Real time processing C Distributed processing
B Batch processing D Centralized processing
The _________________ system exists to support the human resources management
23 function in performing its duties of maintaining an appropriate workforce. Which two
can fill in the blank in equal meanings?
A Personnel Information System C Human Resource Information System
B Employee Database D Time in – Time out Sheet
___________is the integrated management of main business processes, often in real-time
24
and mediated by software and technology.
A Entrepreneurial Resource Planning C Enterprise Resource Planning
B Enterprise Reliable Planning D Enterprise Resource Processing
The objective of the _________ is to ensure that the business maintains an appropriate
amount of inventory at all times. The control system should be able to indicate accurate
25
levels of inventory for all the lines maintained by a business and trigger the ordering of
replacement inventory when inventory levels fall to a certain level.
A Stock Management System C Inventory Control System
B Inventory Optimizing System D None of the above
The system will typically be linked to the inventory control system so that the sales
26 person can establish whether the organization is capable of fulfilling the order received.
Which two are correct.
A Order Processing System C Trade Order Management System.
B Procurement System D None of the above
This information system may include special spreadsheets that present financial data
27 comparing the company to its principal competitors and graphs showing current
economic and industry trends.
A TPS C DSS
B MSS D EIS
This system helps businesses by providing quantitative data and predictive models that
aid problem-solving and decision making. This system developed to helps managers
28
make decisions using interactive computer models that describe real-world processes.
Which two terms are relevant to express its name.
A Expert System C Intelligent Decision Support System
B Management Support System D Decision Support System
After reading fallowing characteristics which information system come into your mind
1) Supports structured decisions
29 2) Reports on existing operations
3) Little analytical capability and is relatively inflexible
4) More Internal focus
A TPS C DSS
B MSS D EIS
By reading fallowing functions which are the systems come into your mind
The system might be split into a number of modules including:
30 1) Nominal ledger
2) Accounts payable
3) Accounts receivable
A Transaction Processing System C Financial Reporting System
B Financial Accounting System D All of the above
The information system involves:
31 1) Maintaining a system of accounting records for business transactions and other items
of a financial nature; and
25
2) Reporting the financial position and the financial performance of an entity in a set of
‘financial statements.
Which of the two terms can define above system?
A Financial Accounting System C Economic Reporting System
B Financial Reporting System D Book Keeping System
An _________is a computer program that uses artificial intelligence (AI) technologies to
32 simulate the judgment and behavior of a human or an organization that has expertise
and experience in a particular field. Choose most common term used.
A Natural language processing C Expert System
B Knowledge Engineering D Neural network
If you need to plan by your own but with the help of an information system which tells
you to the plan the fastest and best routes between two points by analyzing the available
33 options. These systems often include the capability to monitor traffic in real-time to route
around congestion.
Which system is in your mind
A MIS C DSS
B TPS D None of the above
34 CaDet (Cancer Decision Support Tool) is used to identify cancer in its earliest stages.
A TPS C DSS
B MSS D ES
The personnel system exists to support the function in performing its duties of
35
maintaining appropriate workforce.
A IT management C Customer management
B Human resources management D Order management
Which of the following assists management by providing graph trends and summary
36
reports for making decisions on head count?
A TPS C DSS
B MSS D EIS
ERP is a _______ system driven by an integrated suite of software modules supporting
37
the basic internal processes of a business.
A Cross country C Cross functional
B Cross technology D Cross cultural
The _____ level users of information system make unstructured, strategic decisions and
38 use information from tactical managers and external data to guide them when making
strategic decisions with the help of ______ information system
A Middle management C MSS
B Top management D EIS
This information system typically emphasizes graphical displays and simple user
interfaces with a ‘high-level’ executive summary styled dash-board. Directors can then
39
drill-down into various components of the dashboard to extract more detailed
information if required.
A TPS C DSS
B MSS D EIS
A software integrates with your core business operations, like your inventory tracking
system, eCommerce payment gateway, and shipping and handling. You no longer need to
40 bounce through multiple software programs when you have the answers you need in one
place. This is a cross-functional system driven by an integrated suite of software modules
supporting the basic internal processes of a business.
A Manufacturing Resource Planning C Organizational Resource Planning
B Enterprise Resource Planning D Strategic Resource Planning
26
Chapter No. 6 Business Ethics
A ___________, one of the most common ethical issues identified by employees, exists
when a person must choose whether to advance his or her own personal interests or
1 those of others. Insider trading is an example of this phenomenon. Insider trading is the
buying or selling of stocks by insiders who possess material that is still not public.
Which one is the most common term can be used to fill in the blank.
A Undue influence C Personal interest
B Conflict of interest D Competing interests
An _______ issue is an identifiable problem, situation, or opportunity that requires a
2
person to choose from among several actions that may be evaluated as right or wrong,
A Morals C Discipline
B Principles D Ethics
3 Which one is not an ethical issue.
A Acting within the law. In international business, ethical behavior often means compliance
with accepted international codes of behavior, such as a code against bribery, by
organizations seeking to win a major contract from a customer.
B Fair and honest dealing with suppliers and customers.
C Acting fairly towards employees and showing due concern for the welfare of employees.
D None of the above
Of the three main sources of rules that regulate the behavior of businesses, the minimum
4 level of acceptable behavior is to fallow the laws and second one is to fallow the non-legal
rules and regulations, which one is the third important thing to fallow.
A Society norms C Ethics
B National ideology D Industrial norms
What is the name given to an approach to ethical decision-making which considers the
‘
5 right’ decision to be the one which results in the greatest good to the greatest number of
people in a given situation?
A Utilitarianism C Virtue ethics
B Deontology D Corporate social responsibility
Jeyaun is an employee in ABC Ltd. He has been offered a bribe by an existing supplier
to continue buying a key component used in ABC’s manufacturing process form them, in
6
spite of a new rival company offering the same component at a significantly lower price.
Which of the following statements regarding Jeyaun’s decision is correct?
A Matter is serious concerned with business ethics
B Jeyaun will be egoist if he accepts the bribe
C Matter is serious concerned of the conflict of interest
D All of the above
As per the behavior ICAP is following not only the letter, but the spirit of the law, it is
7
said to:
A Just a compliance-based approach to law only
B Adopt an integrity-based approach to ethics
C Meet its social obligations only
D Follow the industry ethical code only
Suppose a car dealer is assured a customer that a car has not been in an accident and it
8 has, while he has not studied the history of the car. This is a form of ethical breach.
We can term it by two of the options given
A Donald Trump's outrageous statements “Why do you keep saying things you know are not
true?
B Saying things, you know are not true
C Giving or allowing false impressions.
D It is according to virtue of ethics
27
The salesperson who permits a potential customer to believe that cardboard boxes will
hold the customer’s tomatoes for long-distance shipping when the salesperson knows the
9
boxes are not strong enough has given __________
Choose two terms can work here?
A Donald Trump's outrageous statements “Why do you keep saying things you know are not
true?
B Saying things, you know are not true
C Showing things work, while it will not work
D Giving or allowing false impressions.
Bobi is a chartered accountant and he has uncovered fraudulent activity within the
10
company he works for. Who should he alert about this matter first?
A His professional accountancy bodies C His company’s Compliance Officer
B The company’s major shareholders D The relevant authority
ICAP members are required to comply with five Fundamental Principles. Which of the
11
following contains three of these principles?
A Integrity, Objectivity, Honesty
B Professional competence and due care, Professional behavior, Confidentiality
C Social responsibility, Independence, Scepticism
D Courtesy, Reliability, Responsibility
Consider the following statements:
1) All ICAP members must comply with the Fundamental Principles of Ethical Code,
12 whether or not they are in practice.
2) Professionals owe an obligation to society above their duty to their client.
Which of these two statements is/are correct?
A Only 1 C Both
B Only 2 D Neither
Failing to disclose the results of medical studies that indicate your firm’s new drug has
significant side effects is the while it was not printed on the packed of the drug, that the
13
product could be harmful to purchasers.
It means firm is
A Divulging or hiding information C Conducting a fraud
B Taking unfair advantage D It is an unintentional error
A manage harasses an employee or subject’s employees to humiliating corrections or
14 reprimands in the presence of customers.
The situation is called
B Taking unfair advantage D Abusing and mistreating people
15 Imagine making the decision and then look at yourself in the mirror.
A How do you feel?
B What do you see in your eyes?
C Does it trigger alarm bells, violate your principles, or summon a guilty conscience?
D All of the above
Project selection refers to the process of outlining and choosing the next venture for a
team. Projects typically compete for resources, so you must consider the demands and
16
goals of each potential project and prioritize them accordingly. Which of the following
statement is true in testing ethical decision-making for a project?
A Select only if mirror test is cleared C Ensure maximization of shareholder’s
wealth
B Select without considering mirror test D None of the above
17 Which of the following statement is not an advantage of being socially responsible?
• More support for local and global communities.
A
B Increased investment opportunities.
• Increased employee turnover.
C
• Better bottom-line financials.
D
28
Many current consumer protection laws were passed because so many businesses took
unfair advantage of people who were not educated or were unable to discern the nuances
18
of complex contracts.
The matter we can term as __________
B Taking unfair advantage D It is an unintentional error
19 Which of the following statement is not an advantage of being socially responsible?
A Being a socially responsible organization can build a better market image
B It improves employee commitment & loyalty
C It contributes positively to employee morale and lead to greater productivity in the
workforce.
D It creates an over expectation which make customers protest for maximum quality
20 Corporate social responsibility refers to the idea that a company should:
A Play an active part in the social life of the local neighborhood
B Be sensitive to the needs of all stakeholders
C Be alert to the social needs of all employees only
D Act responsibly in relation to shareholders' wealth maximization
Corporate social responsibility or corporate social impact is a form of international
21 private business self-regulation which aims to contribute to societal goals of a
philanthropic, activist, or charitable and give benefit like ________
A Press opportunities and brand awareness. C A stronger employer brand.
B Increased customer retention and loyalty. D All of the above
Mr. Saleem has been asked to prepare a presentation for the company directors on good
22 corporate governance. Which one of the following is, he likely to exclude from his
presentation ethically?
A Risk management C Maximizing shareholder wealth
B Good Internal controls D Accountability to stakeholders
Which of the following would best explain the ethical concept of sustainable
23
development:
A Starting business on the developed countries where the economic climate is conducive to
trade
B Development which meets the needs of the present without compromising the ability of
future generations to meet their own needs
C Sustaining the production at the level of maximum capacity
D Developing the business by signing long-term contracts with suppliers
Which of the following statements about corporate social responsibility is true?
1) CSR guarantees increased profit levels
24 2) CSR adds cost to organizational activities and reduces profit levels
3) Social responsibility may have commercial benefits
4) Social responsibility is a concern confined to business organizations
A 1, 2, 3 & 4 C 2&4
B 1&3 D 3 only
25 Which of the following statement is not True?
A Environmental effort is one of the primary focus of CSR
B Mirror testing is a technique for ethical decision-making
C Avoiding conflict of interest is a consideration for business ethics
D None of the above
Organizations that have NOT been exposed to reputation risk include: Your answer
26
____ and ____
A Organizations accused of buying from suppliers in developing countries that use child
labor or slave labor
B Organizations accused of polluting the environment
C Track key performance indicators for lean production method
D Improve internal communication and consensus-based decisions
29
Following are the key consequences of unethical behavior: Which one is not outcome of
27
it.
A Conflict between members C Conflicting demand
B Blame culture D Better pose sales services
28 Which of the following statement are True for corporate code of ethics?
A It may be formal or informal C In UK very few top organizations have
it.
B Strongly endorsed by ICAP D It knows as IFAC code ethics as well
Daniyal is a chartered accountant in Rosemund & Co. They are in the process of inviting
quotations for the supply of machinery for their new factory. It is expected that the
machinery installation will be subject to inspection. It is estimated that it will take a time
period of 2-3 months for the commencement of operations. The Human resource
department has also initiated the process of hiring staff for the new factory. Daniyal also
sits on the interview panel. A candidate has been shortlisted for one of the positions. He
matches the job description and is asking a salary which is within organization’s
29
budgeted amount. During the interview, he informed that he has got another job offer,
due to his financial needs, he can only wait till two months, else he will take up the other
job offer. The HR manager asked him to refuse the other job as the organization will
commence its operations within two months. Daniyal reprimanded the HR manager and
told the candidate that it can take more than 2 months for the organisation to commence
its operations and he should take up the other job offer if he wants to. In this case,
Daniyal has abided by the_____________.
A Objectivity C Conformity
B Integrity D Professional behavior
Ali, a chartered accountant, is a manager in Delta Co, an organization which deals in the
manufacturing of soaps and detergents. He authorizes payments to suppliers, for raw
material purchase, after ensuring that the required documents are in order such as
purchase order, goods received note (GRN) and payment requisition by the relevant
30 department. He has received a requisition for payment to a supplier who is the brother
of the Chief Financial Officer (CFO). The goods have not been delivered yet, however,
the CFO has advised Ali to authorize the payment, which is against organization policy.
Ali has refused to the CFO that the payment shall not be made unless GRN is received,
despite being advised by the CFO. In this case Ali has abided by _________
Sara is a senior manager-Finance in Razi & Co. She passed her CA exams in 2016 and
still refers from International Financial Reporting Standards (IFRS) Edition 2016 from
31 which she prepared for her exams. Sara is in violation of the fundamental principle of
“__________” because she does not provide her professional services based on current
edition of the IFRS.
B Integrity D Professional Competence and Due Care
Each year, the board of directors approves the salary adjustments and HR promotions
during June/July. In the recent board meeting, Arham has found out that his friend’s
promotion has also been approved by the Board. He shares this information with him as
32
soon as the board meeting is over, although the HR department has not issued any
official notification yet. Arham is in violation of the fundamental principle of
“__________”.
A Objectivity C Confidentiality
Shoaib Ahmed and Ameet Kumar are CFOs in rival beverages organizations. They are
invited on a talk show on national tv. During one of the questions, they get into a debate
33
which gets heated. Both Shoaib and Ameet lose their cool and get into a verbal fight.
This behavior demonstrates violation of the fundamental principle of “_________”.
30
A Professional Behavior C Confidentiality
Members have a continuing duty to maintain update about new laws & regulation and
34 skill at a level required to ensure that a client or employer receives competent service
based on current developments in practice, legislation and techniques.
B Integrity D Professional Competence and Due Care
Member should be straightforward and honest in all business and professional
35
relationships.
Members should not allow bias, conflicts of interest or undue influence of others to
36
override professional or business judgments.
Members should comply with laws and regulations and should avoid any action that
37
discredits the profession.
Members should respect the confidentiality of things that are in knowledge acquired as a
result of professional and business relationships and should not disclose any such things
38
which a professional know to third parties without proper or specific authority or unless
there is a legal or professional right or duty to disclose
Members have a continuing duty to maintain professional knowledge and skill at a level
39 required to ensure that a client or employer receives competent professional service
based on current developments in practice, legislation and techniques.
A Objectivity C Professional competence and due care
Which of the following would raise ethical issues for a manufacturer of fast-moving
consumer goods?
1) The materials used in manufacture of the goods
40 2) The quality of the goods
3) How the goods are advertised
4) How much its raw materials suppliers pay their staff
5) How the goods are packaged
A 2 & 3 only C 2, 3 & 5 only
B 1, 2 & 3 only D All statements
31
Chapter No. 7 Marketing Concepts
There is a process by which consumers evaluate making a purchasing decision. When
1 evaluating specialty products, consumers base their purchasing decision primarily on
personal preference, not on __________________
A Comparative alternative C Comparative pricing
B Competitor’s products D Comparative quality
Product features are a product's traits or attributes that deliver value to end-users and
2 differentiate a product in the market. Products usually contained feature which are
______ or ________.
A Desirable, satisfactory C Significant, beneficial
B Favorable, unfavorable D Desired, undesirable
Mr. Saleem goes to buy a packet of Olper Milk; the price of milk at the shop is Rs
3 350/kg. Without bothering about price and comparing it with the price other shops are
offering, he buys the milk. This indicates which class of the consumer product?
A Shopping product. C Convenience product
B Specialty product. D None of the above
Baji Shamsa is a house wife, goes for shopping for clothes at Model Town Link Road.
During the shopping she finds a dress at one shop, she has like it but not purchased due
4 to high price and at the other shop the price of the same dress is comparatively low with
better quality stuff. So, she buys the dress from this shop which is offering low price with
high quality. This is the example of which type of consumer good.
A Specialty product C Convenience product
B Shopping product D All of the above
Sales and advertising serve different functions and use different strategies in business.
Sales uses a "_____" strategy to convince people to buy products. Advertising delivers
5
messages to consumers, drawing them through a company's product distribution
channels like the company's website it is based on _______
A Push & pull C Both are pull
B Pull & push D Both are push
6 Furniture, electronics, clothing, and phones are all examples of __________ products.
________ tends to focus on the general population, whereas ___________tends to focus
7
on individuals or a small group of prospects. Please fill the blanks in right order.
A Marketing C Buying
B Selling D Purchasing
Choose right option to fill in the blank
1) ______ is method of identifying products and differentiating them from competing
8
products.
2) ______ refers to the short term need to get an agreement signed
A Packaging C Branding
B Advertising D Selling
1) Consumers of such products are willing to exert special effort to purchase products.
2) Products are typically high priced,
9
3) Buyers do not use much time to compare against other products
Which type of product you may gauss it _________
Which of the following can fill in the blank
10 1) The market mix has 5Ps we can term as _________
2) Which of the following is the typical product life cycle phases__________
A Product, Price, Promotion, Place & People
B Introduction, Growth, Peak, Decline
32
C Introduction, Growth, Maturity, Decline
D Product, Price, Promotion, Place, & Process
Fill in the blank by choosing right options.
11 1) Which of the following is an intangible part of a product is _______
2) A consumer who purchases an e-book on Kindle are known as a ________.
A Good C Digital buyer
B Service D Walk in buyer
These products can range in price, style and quality,
For these products consumers often spend a great deal of time comparing shopping
12
products before purchasing them.
You can term them as _________________
13 1) One of the characteristics of industrial products is that it has________:
2) One of the characteristics of consumer products is that it has________:
A Direct demand C Limited buyers
B Derived demand D Many buyers
_________is the period in which additional competing products have entered the market,
and sales of the product level off because of the increased competition. At this point,
14 most marketing strategies are used to ensure that customers are still aware that the
product exists. Some marketing strategies may offer special discounts to maintain
market share
A Introduction C Maturity
B Growth D Decline
1) A category of consumer goods which are bought frequently,
2) A category of consumer goods which is purchased quickly
15
3) Consumer is not having a minimum of emotional involvement;
You can term this product as ________.
A phase of product life cycle in which, consumers start to take action. They buy the
16 product; the product becomes popular and results in increased sales. There are other
companies also that notice the product as it starts getting more attention and revenue
B Growth D Decline
This is when marketing teams begin building product awareness and targeting potential
17 customers. Typically, when a product is introduced, sales are low and demand builds
slowly. Which of the following given typical phase of product life cycle.
B Growth D Decline
1) ______ is a method of identifying products and differentiating them from competing
18 products. These are typically represented by a name and a symbol.
2) ______ is a brand’s form of identification that is legally protected from use by other
businesses.
A Logo C Branding
B Labeling D Trademark
Branding is a method of identifying products and differentiating them from competing
19
products. Brands are typically represented by a_________.
A Name and sign C Label and symbol
B Name and a symbol D Signature and Name
Profitability will fall, eventually to the point where it is no longer profitable to produce,
20
and production will stop.
33
B Growth D Decline
A trademark is a brand’s form of identification that is _______from use by other
21
businesses.
A Ethically protected C Legally protected
B Socially protected D Protected by standards
22 When were modern selling concepts originated?
A After industrial revolution C After 1950’s
B After great depression D All of the above
In which phase sale of product increases rapidly along with increase in the number of
23
prospectus and customer in the market?
B Growth D Decline
The most important reason branding is important to a business is because it is how a
company gets identification and becomes known to the consumers. The logo is the most
24 important element of branding, especially where this factor is concerned, as it is
essentially the face of the company.
This issue is related with heading _________.
A Branding gets more customers C Branding gets recognition
B Branding create trust D Branding gets markets
The aspect of selling a product that relates to where and how a company delivers a
product to consumers. This includes the distribution channels a company uses, how they
25
transport and store goods and a product's placement within a retail outlet.
The issue is related with ________
A Product C Place
B Price D Promotion
In which phase, more players are entered in the market and high competition of product
26
is observed?
B Growth D Decline
A good brand will have no trouble drumming up referral business. Strong branding
generally means there is a positive impression of the company amongst consumers, and
they are likely to do business with a company because of the familiarity and assumed
27
dependability of using a name they can trust. Once a brand has been wellestablished,
word of mouth will be the company’s best and most effective advertising technique.
Issue is related with ______ or ______.
A Branding cost more than benefit C Branding attracts new customers
B Branding is pride for employees D Branding generates more sales
It requires a definition related with its features, used, benefit and positioned in the
28
market place.
A Product C Place
B Price D Promotion
When an employee works for a strongly branded company and truly stands behind the
brand, they will be more satisfied with their job and have a higher degree of pride in the
29
work that they do.
Matters are related with ____ and ____
A Employee pride to attach with good C Increase employee demands of salary
brand
B Increase in employability D Reduce to employee turnover rate.
It is a marketing strategy brands create to establish their brand identity while conveying
30 their value proposition as compare to competitive brands, which is the reason why a
customer would prefer their brand over others.
A Brand attributes C Brand positioning
B Brand characteristics D Brand ownership
34
Which of the following is not part of the responsibility of a research and development
31
department in a marketing mix?
A Change in customer taste and new features required in a good
B Number of estimated customer and market demand for products
C Developing new customer tracking system as increase in population
D Researching new technologies for application to future products
__________ are components, which creates the identity of brands such as name, slogan,
color, characters, symbol, sound, jingle, shape, graphic, tastes and movements etc. For
32 example, the symbol of Honda (H), slogan of Dawlance “Dawlance Reliable Hai”,
character of KFC “KFC + old man”, the yellow color of McDonald’s (M) and jingle of
Nokia (Tune) etc. are the examples of brand elements, which creates the brand.
A Brand attributes C Brand positioning
B Brand characteristics D Brand elements
Marketing is mainly concerned with which of the following? Which one is closer to the
33
philosophy of marketing
A Increase sales revenue and get famous
B Streamlining production and improve production techniques
C Anticipating and meeting customer needs & provide good and service accordingly
D Maximizing shareholder’s wealth by gaining more and more profit.
Individuals directly or indirectly involved in the business side of the enterprise. That
34 means anyone involved in selling a product or service, designing it, marketing, managing
teams, representing customers, recruiting and training.
A Product C Place
B Price D People
Safari Ltd manufactures and sells board games. It is currently considering the
35 packaging, quality and design of the board games as part of a strategic review.
What element of the marketing mix is Safari Ltd reviewing?
A Product C Place
B Price D Promotion
36 Which one is least considered while deciding price of a product
A Cost and customer affordability C A generic pricing strategy
B Opinionated condition in social groups D Competitors prices
____ and ____ is a marketing strategy used by businesses to attract customers to a new
37
product or service by offering a lower price during its initial offering.
A Penetrating pricing C Price skimming
B Product is in introductory stage D Bundle pricing
Most products experience a product life cycle, or a typical set of phases over their
38 lifetime. It is studied because _____________.
Which of following are wrong.
A The marketing decisions made about a particular product may be influenced by the
prevailing phase of the cycle.
B Product managers create marketing mixes for their products as they move through the life
cycle
C It is relating with to the plans and processes over a limited period of time.
D In general concepts there is may be gaps between phases of the product life cycles
During development of a brand, we should involve whether they’re within the same
39 agency or cross-pollinating among various agencies, having different professionals
develop digital ads.
A No, we should choose the experts from similar field
B Work with given idea is best one
C It makes no difference
D It will hurt the whole company
35
Marketing determines future needs and has a strategy in place to meet those needs for
40 the long-term relationship and sales management just make customer demand match the
products the company currently offers
A True B False
36
Chapter No. 8 Human Resource Management
Although, without the key skills, it might be impossible to develop the business
1 successfully. A critical success factor for an entity might be to have _________ or ______
at its disposal
A Sufficient human resources with the necessary skills.
B Right amount and right kind of people
C Right sizing of labor
D Downsizing of labor
Which of the following is not a responsibility of the human resource management
2
function?
A Assess the quantity and quality of human resources currently available
B Estimate the quantity and quality of human resources that will be needed in the future
C Encourage employees of low performance to leave
D Consider ways of ‘filling the gap’ and ensuring that the entity has the human resources
that it needs
3 Among the given, which of the following is not the part of the human resource plan?
A Training & development C Marketing campaign
B HR planning D Job Analysis
The ________will include funds allocated to hiring, salaries, benefits, talent management,
training, succession planning, workforce engagement, and employee wellness planning.
4
This a financial plan uses financial information, performance results and historical data
from every department.
A Firm budgeting C Projected plan
B Cash flow analysis D HR budget
Which two are the normal trend in human resource management regarding recruitment
5
& selection?
A Centralize recruitment and selection responsibilities within the HR
B Involve recruitment and selection to line managers
C Devolve recruitment and selection to the board
D Job analysis conducted before next steps
A recruitment manager has prepared a statement of the key duties, tasks and reporting
6 responsibilities involved in a particular job, as the basis for job interviewing.
What name would be given to such a statement?
A Job analysis C Job advertisement
B Job description D Personnel specification
Job descriptions have advantages for use in all but one of the following areas of human
7
resource management. Which is the exception?
A Job evaluation C Recruitment
B Training needs analysis D Employee flexibility
A document containing skills and knowledge expected of staff occupying a certain
8
position is referred to as:
A Job description C Job evaluation
B Personal specification D Job analysis
___________ are capacities that always lead to behaviors that meet job demands within
9 the parameters of the organizational environment.
Which word correctly completes this sentence?
A Attributes C Competences
B Skills D Attainments
A policy of internal promotion, as opposed to external recruitment, can have positive and
10 negative effects. Which one of the following would be negatively affected by such a
policy?
A Innovation C Induction times
B Succession planning D Accuracy of selection decisions
37
It is a companion document to a job description, describing the personal attributes being
11
sought from applicants to ensure that they are suitable for the role.
A Job description C Job evaluation
B Personal specification D Job analysis
A policy of internal promotion, as opposed to external recruitment, can have positive and
12
negative effects. Identify the benefits
A Employee understand the system of the organization
B Employee will be adjusted and start working early
C Leads to motivation of other employees and succession planning
D All of the above
When vacancies are filled by internal recruitment, the following methods may be used,
13
individually or together and which are not use for internal recruitment.
A Performance reports and appraisals of individuals
B List of potential employees who are ready for promotion may be invited to apply for a
more senior job when a vacancy arises.
C The ‘in-house’ or company magazine
D Internet resources (e.g., Rozee.pk, Monster.com, etc.)
Which media is ideal and choose suitable option for each fill in the blank.
1) When an organization needs to recruit for a specific skill, applicants are likely to be
best reached through which of the following media? Which media is ideal ________
14
2) A financial consultancy firm has a job vacancy for a junior office assistant at one of its
offices. Which of the following would be most suitable medium for the job
advertisement?
A National press C The Internet
B Local newspaper D Trade, technical or professional journals
15 The first stage in the recruitment process is:
A To write a job description C To identify a vacancy
B To write a person specification D To liaise with recruitment consultants
Selection tests which focus on aptitude, intelligence and personality factors are called
16 tests.
Which word correctly completes this sentence?
A Proficiency C Standardized
B Psychometric D Sensitivity
Which of the following would be classed as a ‘selection’ rather than a ‘recruitment’
17
activity?
A Job description C Screening application forms
B Designing application forms D Advertising vacancies
There are a number of avenues to source external applicants for open positions. A
18 company may choose the desired medium based on its goals and overall strategy.
Which one is not external source of recruitment.
A Recruitment agencies
B Media advertising (Television, Radio, National or international Newspapers)
C Open-house (open-days) are commonly used in universities to attract fresh graduates
D Notice board at workplace
Selection tests such as IQ tests and personality tests may not be effective in getting the
19 right person for the job for several reasons. Which of the following criticisms of the tests
is NOT justified, however?
A Test results can be influenced by practice and coaching rather than genuine ability
B Subjects are able to deliberately falsify results
C Difficult to prepare and to mark
D Tests are generally less accurate predictors of success than interviews,
20 Which of the following is not a primary aim of a job selection interview?
A Comparing the applicant against job requirements
B Getting as much information as possible about the applicant
38
C Giving the applicant information about the job and organization
D Making the applicant feel (s)he has been treated fairly
If applicants pass the selection interview, most firms examine their background and
21 check their references. The purpose of reference check is to ___________. Which one is
irrelevant.
A Want to research applicants’ family backgrounds, including parents’ legal history,
B Want to research applicants’ backgrounds, including their legal history,
C Reasons for leaving previous jobs, their creditworthiness (credit check)
D General job conducts to assess current job match.
A firm may require an applicant to have a _______ to ensure he or she is physically and
22
mentally able to perform job tasks.
A Capability test C Medical checkup
B Physical test D None of these
Which of the following statements about training is most likely to be the foundation of an
23
effective training policy?
A Training is the responsibility of the HR department
B Training is all cost and no quantifiable benefit
C The important thing is to do lots of training
D Training can be an effective solution to some performance problems
1) The growth or realization of a person’s ability and potential through the provision of
learning and educational experiences which need the organization in future.
2) The planned and systematic modification of behavior through learning events,
24
programs and instruction which enable individuals to achieve the level of knowledge,
skills and competences to carry out their work effectively in current job.
Which of the following is correct?
A 1 is the definition of development and 2 is the definition of training
B 1 is the definition of education and 2 is the definition of development
C 1 is the definition of training and 2 is the definition of development
D 1 is the definition of education and 2 is the definition of training
Training and development create a more talented and skilled work force leading to: but
25
one option is wrong.
A Higher productivity, therefore lower costs of output;
B Less waste
C Better performance by employees in their jobs
D Cost out weight the benefit
Training in the work place is a method of development of individuals, as well as a
26 method of training. Work place training is for__________. Which of the following are
disadvantages?
A Technical or practical skills C Error hit the output
B It creates pressure to learn and do D It is learning by doing
_____is a process in which individuals are taught something specific. A training program
27 should have a particular objective, to teach the individual some theoretical or practical
knowledge, or to give the individual a new information or skills related to their work.
A Development C Mentoring
B Training D Coaching
28 Purpose of induction training is to ___________. Which one is wrong?
A To help new recruits to find their bearings
B To begin to socialize new recruits into the culture and norms of the team/ organization
C To support recruits in beginning performance
D To make easy if new employee want to continue or exit
_______or _______is a type of corporate training that involves the use of a company’s
29 own expertise and resources. The activity of training employees is carried out by internal
staff and employees. The training refers to the teaching of work-related skills or
39
knowledge to employees with the aim of improving their efficiency and productivity and
the organization as a whole.
A Induction training C In-house trainings
B Off the job training D Internal training,
________is a process of learning through experience and doing work that augments an
30 employee’s skillset and prepares him/her for growth. Individuals learn as they develop
by doing different things at work and gaining new experiences.
A Development C Mentoring
B Training D Coaching
All the following, with one exception, are clear benefits of training and development for
31
an organization. Which is the exception?
A Increased organizational flexibility C Enhance employability of staff members
B Less need for detailed supervision D Improved succession planning
1) Briefing by the HR Manager on relevant policies and procedures: conditions of
employment, sickness and holiday absences, health and safety and so on.
2) Introduce the recruit to key people in the office: co-workers, health and safety
32
officers, etc.
3) Introduce work procedures, systems, rules, reporting structures and so on.
Matter is related with _______
A Training requirements C Induction training
B Train need analysis D Off the job training
Mr. Saleem is offered more of the roles, responsibilities, authority and activities along
with the different hierarchical levels in CFE as he is now involved in planning of the
33
college.
Select two options. Choose options relevant to description.
A Job enlargement C Job rotation
B Job enrichment D Vertical extension of job
34 Given the benefits of training for employee, which one is the benefit for employer
A Learning through training and development improves the motivation of the individual and
gives them a sense of being more valuable (and marketable)
B Career development increases job satisfaction.
C Training and development, by raising the level of skills and abilities, improve the
individual’s prospects
D An ability to compete more effectively with business rivals
Mr. Atif is given duties and tasks across the operational organizational level, but ensure
35
that he has to complete each job from A to Z. choose options relevant to description.
B Job enrichment D Horizontal extension of job
Someone who is on ________ from their normal employer has been sent somewhere else
36
temporarily in order to do special duties. Choose right option.
A Job rotation C Shadowing
B Secondment D Temporary promotion
A boss who wants to develop individuals will give the individuals additional
responsibilities, and delegate authority to the individuals to make their own decisions.
Individuals will gain experience from the additional authority and responsibility, and
37
will be accountable to their boss for how they have carried out the additional
responsibilities.
Choose right options
A Job rotation C Shadowing
B Deputizing D Temporary promotion
_______ is the planned transfer of staff from one job to another to increase task variety.
38 It is also sometime seen as a form of training, where individuals gain wider experience by
working on different positions as trainees in different positions
40
39 Given are the benefits of training for employer, which one is the benefit for employee.
A Higher productivity, therefore lower costs of output;
B Better performance by employees in their jobs;
C Less need for close supervision of subordinates by their managers;
D Career Development and increase satisfaction.
_______ is a practice of regularly transitioning all employees between different jobs to
40 ensure they gain exposure to various departments of the company while learning and
improving their skill sets.
41
Chapter No. 9 Operations of a Manufacturing Company
1 The upper-level manager who directs this transformation process is called an __________
A Transformation Manager C Operations Manager
B Manufacturing Manager D None of the above
The competition also forces manufacturers to be active in the market and industry. The
2
transformation process needs to be ________. Which one is wrong
A Innovate and improve the process by superior automation,
B Enhanced quality-control techniques,
C Efficient supply-chain management
D Work informally with team efforts
3 The key objectives of transformation process are ________. Which one is not its objective?
A To produce and deliver quality products at a competitive price
B Provide goods in a timely manner.
C Prefer efficiency on the responsiveness
D Use as modern technology as possible
________ a company must plan the sourcing of materials and inputs that are required for
4
making a finished product. Which two are correct?
A Shopping Material C Procurement
B Vender planning D Purchase
This includes determining site locations and obtaining the necessary resources. Overall, four
important decisions are made in production planning
1) Mass production, batch production or job production,
5 2) Site selection,
3) Facility layout, and
4) Resource planning.
Which one are correct?
A Only 2 & 3 C Only 3 & 4
B Only 1, 2 & 4 D All of them are correct.
Once the material in converted into the product is under way, managers must continually
schedule and monitor the individual activities that make up that process. They must be open to
6
feedback and respond to make adjustments where needed.
Matter is specifically related with _____?
A Organizational Controls C Production controls
B Internal controls D Monitoring controls
_________is a procedure or set of procedures intended to ensure that a manufactured product
7 or performed service adheres to a defined set of quality criteria or meets the requirements of
the client or customer.
A Organizational Controls C Production controls
B Quality controls D Monitoring controls
Which term can fill in the blank properly, in the given expression? ______ standards also
8
contain an individual standard; the standard lays out the fundamentals and vocabulary.
A ISO 9000 C Quality control standard
B Quality management systems D All of the above
(QMS).
Finding more efficient methods of producing the products is imperative to remain competitive
9
in the marketplace
A Development by fits and starts C Continuous development
B Gradual development D All of the above
42
Given picture shows ______
a) Job production
b) Customize production
c) Mass production
d) None of the above
10
Given picture shows ______ and ______

a) Job production
b) Customize production
c) Mass production
11 d) None of the above
An understanding about increased or high price with respect to products in category, which is
12
correct from low to high?
A Mass production, customize mass production, customize production
B Mass production, customize production, customize mass production
C Customize production, customize mass production, Mass production
D None of the above
In _________, the firm produces goods one at a time according to the specific needs or wants of
13 individual customers. Unlike mass customization, each product or service produced is unique.
Building individual houses is a common example.
A Mass production C Customize mass production
B Customize production D None of these
14 Product made by using mass production method is always ______
A High in price C Moderate in price
B Low in price D None of these
1) Six sigma.
2) ISO 9000 and
15
3) ISO 14000
Are related with _____
A The industry standards to ensure the existence of sound quality procedures.
B Quality control standards in brief
C Related with Quality Management System
D All of the above
16 Which of the following statements is correct?
A Marketing decides the material and quality of product.
B Accounting and human resources help to face the challenge of combining people and resources
to produce high-quality goods on time and at reasonable cost.
C Procurement of material is main concern of the production
D None of the above
17 Which of the following is not an objective of operations management?
A Ensure efficiency of the operation.
B Minimize the costs of materials and labor
C Customer satisfaction and maximize the sale
D Eliminate all costs that add no value to the finished product
18 Which of the following is not a responsibility of operations manager?
A Production planning C Production audit
43
B Production control D Quality control
19 Which of the following are correct statements?
A Mass-customization means manufacturing many identical goods at once.
B Mass-production means goods are produced using mass-production techniques, but only up to a
point.
C Customization of products means a customer can select features like color, design,
functionalities, add-on components
D Customize production gives options to make a more unique item rather than a mass produced
one.
20 In which of the given characteristics, we should not use the mass production?
A Huge amount of production is required
B Similar products or homogenous product to be produced
C Minimal supervision should be need
D Required unique features in the product
Which of the following describes the type of production process that “the firm produces goods
21
one at a time according to the specific needs or wants of individual customers”?
A Mass-production C Mass-communication
B Mass-customization D Customization
22 Which of the following is a correct statement?
A Continuous process is best for high-volume, low-variety products with standardized parts, such
as nails, glass, and paper.
B Intermittent process is best for low-volume, high-variety products such as those produced by
mass customization or customization.
C Product customization refers to enabling customers to personalize a product according to their
needs and preferences.
D All of the above
Which of the following is not a factor for selecting a right location for a manufacturing
23
facility?
A Proximity to resources C Proximity to market
B Proximity to public sector D Manufacturing zone
24 Which are the disadvantages of customize job method
A Workers are likely to be motivated tasks require high degree of skill and expertise.
B Labor cost is very high
C Organization is simple in communication and coordination
D Lead time can be very lengthy
25 _______refers to the transformation of the state of input in to output.
A Transportation. C Inspection
B Alteration. D All of these
26 ________is a system that is used to maintain a desired level of quality in a product or service.
A Economic ordering quantity C Knowledge management
B Quality control D Manpower planning
27 Operations management is applicable ______
A Mostly to the service sector C To manufacturing and service sectors
B Mostly to the manufacturing sector D To services exclusively
28 Which of the following is not an objective of operation management?
A To improve product quality C Material cost control
B To reduce cost of production D Trading on equity
__________involves the tools and methods to optimize production. This includes managing
29 business resources such as people, technology, equipment, and other resources that improve
the efficiency and productivity of the manufacturer.
A Manufacturing operations management C Innovation and creativity
B Product development D Cost minimization and competitive process
The _________is responsible for purchase and sourcing of all raw material and other resources
30
used in the production.
44
A Accounts department C Human resource department
B Purchase department D Marketing department
31 PERT and CPM are the common techniques used for
A Quality control C Production control
B Production planning D None of these
_______ in _______ illustrated the way goods or services are produced when divided into a
32 number of tasks that are performed by different workers, instead of all the tasks being done by
the same person.
A Adam Smith C Wealth of Nation
B Henri Fayol D Book of General Management
The concept of division of labour has contributed immensely to operations of a manufacturing
33 company which continues to this day. Key advantages of division of labour in a manufacturing
concern are: you are required to identify which one is wrong
A Increased efficiency C Specialized skills and talents of workers
B Improvement in quality D Diseconomies of scale
Comparing with product-based organization and process-based organization, with respect to
34
responsibility of cost or profit assigned
A First is project group level & second is centralized at corporate level
B First is centralized at top level & second is at operational level
C Both are at top level
D Both are at lower level
Comparing with product-based organization and process-based organization, with respect to
35
centralized corporate staff.
A 1st is small 2nd one is large C Both are medium level organization
B 1st is large 2nd one is small D Both are very large organization
Manufacturing and operation responsibility in the operational based organization are given,
36
which one is odd
A Operational efficiency
B Operational level recruitment for plant
C Training and development for operational staff
D Production scheduling and control
Manufacturing and operation responsibility in the production-based organization are given,
37
which one is odd
A Assistance to marketing
B Procurement and logistics
C Management level recruitment for plant
D Training and development for operational staff
In a product-based organization, the corporate function responsibilities are given, which one is
38
an odd
A Review request for funds
B Communicate corporate
C Performance evaluation of plant controllers as a profit center
D Assist marketing strategies
In an operation-based organization the corporate function responsibilities are given, which one
39
correct
A Procurement and logistic and Inventory management
B Assistance in production scheduling
C Plant performance evaluation as a cost center
D All of the above
40 What are the two advantages of customized job method,
A Can produce unique product suit to the situation and need
B This type of organization can easily be supervised due team-based approach
C Related tools and equipment are generally very expensive
D Workers know their worth so charge high salary
45
When considering the roles of different departments, which one of the following is likely to be
41
concerned with identifying and satisfying customer needs?
A Production C Marketing
B Research and development D Purchasing
42 A quantitative approach for the purpose of quality control
A Statistical quality control
B Six sigma
C x̄ ± 3σ
D All of the above
1) Control and supervision of the production workforce managing product quality
2) Maintenance of plant and equipment
43
3) Control of inventory
Given activities are related with ______
A Marketing C Accounting
B Production D Inventory
_________in the manufacturing industries is often concerned with payroll, administrative
44 work and mediating between the management and the workers. Mostly, the manufacturing
companies lean on the manpower function in times of labor unrest and strikes.
A Production operation management C Financial Management
B Human resource management D Operational Management
Consumer wants new features in product and new creative characteristics, concerning the
45 implications of product design for production methods and cost. Area is combined and related
with _____ and ____
A Human resource management C Production management
B Marketing management D Research & development
46
Chapter No. 10 Industries of Pakistan – (Power Industry)
Historically, Pakistan’s power sector consisted of two government owned utilities,
1
_____and _____
A WAPDA C K-Electric
B SPARCO D WASA
2 K-Electric was responsible for power distribution in Multan and adjacent areas;
A True B False
WAPDA, a__________, was mandated to regulate and distribute power in the major
3 area of country. In addition, water and hydropower resources came under the umbrella
of WAPDA.
A Totally private company C Semi-autonomous statutory body
B A public sector company D A government bureau
4 ____ and _____ resources came under the umbrella of WAPDA.
A Atomic power C Water
B Solar power D Hydropower
5 WAPDA was unbundled into various ________
A Generation Companies
B National Transmission & Dispatch Company and
C Distribution Companies,
D All of the above
6 Generation Companies are abbreviated with ______
A CENCOs C GENCOs,
B JENCOs D SEMCOs
7 In Pakistan power distribution companies are abbreviated with _______
A DISCOM C DISCOs
B DISGEN D TWISTO’s
A _______is a set of activities that an organization operating in a specific industry
8
performs in order to deliver a valuable product for the market
A Outbound logistics C Inbound logistics
B Supply network D Value Chain
Downstream refers to the material inputs needed for production, while upstream is the
9
opposite end, where products get produced and distributed.
A True B False
Vertical integration refers to an arrangement in which the _______ in of a company is
10
integrated and owned by that company
B Distributed network D Supply Chain
__________ refers to the degree that a company must invest money in physical or
11
financial assets in order to produce a profit.
A Labor intensive C Capital intensive
B Labor absorbing D Human capital based
When the turbines generate electricity, its voltage is significantly increased by passing it
12
through ________.
A Step-down transformers. C Step-jump transformers.
B Step-up transformers D Step-by-step transformers.
Once the high-voltage electricity reaches the grid, electricity is_________, again through
13
the use of transformers, to make it safe for use by households and end users.
A Enhanced in voltage C Reduced in voltage
B Increased in voltage D Peak in voltage
When electricity leaves the Grid Station’s transformer, it enters distribution power lines
14
on its way to the final destination.
A Divide into many C Distribution
B Supplied to household D Supplied to factories
47
_________ refers to the entire process of making and selling commercial goods, including
15 every stage from the supply of materials and the manufacture of the goods through to
their distribution and sale.
B Distributed network D Supply Chain
The upstream part of the value chain is called _____and ____. Different technologies and
16
fuel sources are used for this purpose.
A Generators C Power Producers
B Creators D None of the above
In Pakistan thermal technologies use different sources of fuel, such as ____. Which one is
17
odd?
A Natural gas C Furnace oil
B Coal D Hydrogen
Once it reaches the neighborhood, electricity passes through another transformer
18 (usually pole mounted, called PMT) ________. This ensures that it is safe to use in homes
and offices
A For further voltage enhancement C For further voltage reduction
B For further voltage increase D None of the above
In an ideal scenario, electricity that has left the power plant and the energy billed should
19 be equal. However, that is not the case. The shortfall of electricity between energy
generated and energy billed is called ______________.
A Transmission and output losses C Transmission and distribution losses
B Production capacity and usage gap D Transmission and distribution gain
20 Karachi and its adjacent areas are served by K-Electric; a_________________.
A A semi government company C Privately owned utility company
B A foreign based company D Government owned company
This is the __________company in the power sector involved in generation, transmission
21
and distribution segments.
A Diversified growing company C Only horizontally integrated
B Concentrated growing company D Only vertically integrated
22 Pricing in the power industry is determined by the____________.
A Demand and supply forces C Regulator and government authorities
B Private producers D None of the above
________are provided by government in different segments to encourage or promote a
23
certain segment of the economy or particular industry and consumers.
A Subsidies C Aid
B Discounts D Technical support
A tariff on the basis of _________on investment over plant life/contract period is
24
determined by the regulator; and is contracted. All cost variations are also admissible
A Variable rate of return C Fixed rate of return
B Semi-fixed rate of return D Stepped rate of return
_________ are amounts that are not paid for by users. T&D Losses= (Energy Input to feeder
25
(Kwh)-Billed Energy to Consumer (Kwh)) / Energy Input kwh x100.
A Transmission and output droppage C Transmission and distribution losses
B Production capacity and usage gap D Transmission and distribution dropped
Government of Pakistan issues _________to Independent Power Producers, backing up
26
the payment obligation of the power purchaser
A Promise to pay C Guarantee
B Ensure payment will be done D All of the above
With contribution of private sector mainly in generation segment, the sector has____ or
27
____.
A High dominance by public sector C High dominance by private sector
B High dominance by government D High dominance by semi-government
28 NEPRA stand for _______
48
A National Electron Power Regulatory Authority.
B National Electric Power Regulatory Authority.
C National Electric Power Regulatonal Authority.
D None of the above
Regulatory authority for this purpose is NEPRA, which is an autonomous body
29
mandated by the law to regulate the power sector to ensure that _______ and ______.
A The interests of investors and customers are protected,
B Ensure a competitive environment is maintained
C Ensure plants are update and up to the mark.
D All of the above
__________ also ensures that inventories are kept within range so the working capital is
30
not tied up while spares are available when needed.
A Buying and logistics C Procurement and logistics
B Inbound and logistics D None of these
Operating in a sector where the primary product poses a hazard to life, _______ is of
utmost importance. Companies are required to abide by safety requirements of various
31
documents including Power Safety Code, Distribution Code, Power Safety Manual and
other applicable documents.
A Occupational health & safety C Health, safety and environment
B Workplace health & safety D All of the above
• Source and retain manpower with required skillset to work on plant and network
• Maintaining industrial relations for labour
32
• Learning and development of talent
Functions are related with ______ department
A Human resource management C Labour management department
B Manpower planning section D Training development department
• Management of a large volume of various consumer segments of a distribution company
• Customer account maintenance
33
• Loss minimization and timely recoveries
Functions are related with _____ department
A Customer relationship management C Billing function
B Customer services department D Dealing with default
• Media and PR management; as power related issues directly affect the lives of people
• Uplift and secure the corporate image
34
• Communication for corporate affairs
Functions are related with _____ department
A Customer relationship management C Billing function
B Customer services department D Marketing & Communication
35 Given are the challenges of power industry? Which one is the exception
A Prompt response to customer complaints
B Timely collection of bills
C Uninterrupted power supply to consumers
D Motivating power theft and line losses
49
Chapter No. 10 Industries of Pakistan – (Textile Industry)
1 Which one the largest industry of Pakistan
A Automobile C Sports good
B Surgical instruments D Textile
Textile industry plays a vital role in contributing to the country’s economy through its
2
industrial production, ___________and ____________
A High employment opportunities C Promote cultural value
B Improve social and national norms D Bringing in foreign exchange.
The proportion of textile industry in the country’s economy along with its contribution
to exports, in terms of GDP employment, foreign exchange earnings, investment and
3
value addition and revenue generation altogether placed the industry as___________ of
the country. Choose the most suitable option.
A One of the largest manufacturing sectors C Left behind others industries
B One of the renown industries D The single largest manufacturing sector
4 The major cities representing textile industries include ______. Which one is incorrect?
A Karachi C Sargodha
B Faisalabad D Lahore
This value-added sub sector of textile industry is a made-up sector which in addition to
5 meeting local needs, exports products under different categories including _______.
Which one is odd?
A Garments and hosiery, C Tool kits and leather jackets
B Bed wear and towels D Tents and canvas
6 Sub-sectors of textile industry are _______. Which one is odd.
A Spinning C Processing
B Swinging and Weaving D Stitching
7 The contribution of textile sector to export of Pakistan is _______
A More than 20% C More than 40%
B More than 30% D More than 50%
8 More than _______ labour force is directly or indirectly attached with textile sector.
A More than 20% C More than 25%
B More than 30% D More than 35%
APTMA being the major representative association of textile sector in Pakistan, which
9
means
A Association of Pakistan Textile Mills Association
B All Pakistan Textile Mills Association
C Acting Pakistan Textile Mills Association
D Active Pakistan Textile Mills Association
Textile products are available at lower prices in other countries because of subsidies and
10 other benefits and therefore Pakistan’s products have become ______ and therefore
Pakistan’s Textile Industry becomes ________.
A Less competitive C Dull & Stagnant
B More competitive D Actively growing
___________are applied to provide protection to domestic industry which has resulted in
11 inefficiencies in the local manufacturing process and therefore Pakistan’s Textile
Industry becomes ________.
A Tariffs on imported textile materials C Dull & Stagnant
B Subsidies on imported textile materials D Actively growing
________, due to climate changes, farmers’ interest in more profitable crops, or lack of
12 using new technology and modern methods of harvesting and therefore Pakistan’s
Textile Industry becomes ________.
A Ever growing cotton production C Dull & Stagnant
B Stagnant domestic cotton production D Actively growing
50
Government planning, that textile sector took the benefit of ________ means groups of
13 textile firms that gain a competitive advantage by co-locating in a same geographic
region and sharing assets, networks, knowledge, workforce training, etc.
A Group develop and growth C Sample development and growth
B Cluster develop and growth D None of these
Given are the reasons of dull and stagnant growth of textile industry, one option is
14
wrong, identify which one
A Limited number of value-added products
B Low usage of manmade fibers
C Failure to benefit from cost efficiencies through cluster development & growth.
D Believe human relation and contingency school of management
15 Primary raw materials used in the textile industry are ______. Which one is odd?
A Cotton C Bisphenols
B Polyester D Viscose
A machine used for quickly and easily separates cotton fibers from their seeds, enabling
16
much greater productivity than manual cotton separation. It is named as _____ or _____
A Cotton gin C Cotton waver
B Cotton ginner D Cotton mover
17 Cotton ginners, represented by PCGA which means ________.
A Pakhtoon Cotton Ginners Association C Pakistan Cotton Ginners Association
B Peshawar Cotton Ginners Association D Punjab Cotton Ginners Association
18 Cotton Ginners are located in cotton growing areas of _________
A KPK and Punjab C Punjab and Sindh
B Baluchistan and Punjab D Gilgit B. & Sindh
Most of the cotton ginners are ___________and operate sale channels with the help of
19
cotton brokers.
A Registered as separate corporate entities C Registered as corporate entities
B Not registered as corporate entities D None of the above
Demand and supply dynamics of cotton ginners is affected by various factors including
20
______. Which one is wrong?
A Weather conditions,
B Import duties on imported cotton,
C Upstream social factors.
D Exchange rates and general economic conditions of the country.
The agro economics largely derives the local crop pricing, however, for high quality
21
cotton, textile industry is dependent on import channels.
A True B False
22 There are two types of spinning is associated with Pakistan textile industry
A Fiber spinning C Rubber spinning
B Cotton spinning D Jute spinning
The _______ of cotton yarn is the initial stage of textile product processing. The process
23 of producing yarns from the extracted fibers is called ______. In this process: The
strands of cotton fibers are twisted together to form yarn.
A Spinning C Tuning
B Swinging D Turning
________and ______are major polyester manufacturers in Pakistan. Which two name
24
are original manufacturers.
A GMC Fiber C Ibrahim Fibers
B Millat Fiber D ICI Polyester
In Pakistan cotton is being imported from around the world majorly from ______.
25
Which one is wrong
A USA C Middle East
B India D Africa
26 The polyester is also being imported, majorly from _______. Which one is wrong?
51
A China C North America
B Korea. D Asian countries
_______is a process in which raw materials including cotton and polyester are converted
27
into yarn in a climate-controlled facility
A Spinning C Tuning
B Swinging D Turning
The capacity of spinning unit is denominated in ‘_________’ in ring section, a front-end
28
sub unit in spinning process.
A Number of shafts C Number of spindles
B Number of kicks D Number of bearings
________is a method of textile production in which two distinct sets of yarns or threads
29
are interlaced at right angles to form a fabric or cloth.
A Weaving C Spinning
B Yarn net D Swinging
For planning purposes on subunit levels, a ‘spin plan’ is prepared for planning the yarn
30 types to be produced as well as for _________of input requirement for each subsection of
spinning process.
A Backward planning C Sequential planning
B Forward planning D Lean planning
Weaving is the textile art in which two distinct sets of yarns or threads - called
31
the ______ - are interlaced with each other at right angles to form a fabric or cloth.
A Nutty and kitty C Warp and weft
B Weft and warp D None of these
In weaving, yarn thread from the spinning department is weaved to form greige fabric is
32
____.
A Natural or unfinished stage C A cloth not bleached
B Unfinished woven or knitted D All of these
The capacity of weaving unit is determined by number and type of looms and is
33
denominated in_______.
A Square meter equivalent to 50 picks
B 50/50 he same number of weft picks per inch as there are warp ends per inch in
your cloth.
C Number of weft threads per inch of woven fabric
D All of the above
In this process, the number of ends required for a given fabric quality are taken from
34 multiple warping beams to the weaving beam. Moreover, ______chemicals are applied
on yarn thread to cover the yarn surface to withstand friction in weaving process
A Sizing C Measuring
B Drawing D Comparing
It is a process of preparing weaver's beam for the purpose of weaving fabric on the loom
35
according to design of the fabric.
A Sizing C Measuring
B Drawing D Comparing
The warps are installed in looms in the form of weaving beams and yarn cones are
36
installed to take form of weft.
A Weaving C Spinning
B Sizing D Swinging
Weaved cloth from loom shed is brought into folding section for inspection, mending,
37
grading and packing of fabric.
A Folding & Packing C Compressing & Packing
B Rolling & Packing D Labeling & Packing
Quality of the cloth is testing by maximum 4 penalty points can be given to one fault. If
38 points___________, fabric will be graded as ‘A-Grade Fabric’, however, the criteria is
generally agreed with customers for quality of fabric.
52
A Per 100 sq. yards are less than 10 C Per 100 sq. yards are less than 20
B Per 100 sq. yards are less than 116 D Per 100 sq. yards are less than 30
39 Inspection of fabric is generally done on basis of _______or _______
A 4 Point system C European system
B American system D None of these
________is designed to burn off the surface fibers the fabric to invoke smoothness in it.
40 The fabric passes over brushes to raise the fibers, then passes over a plate heated by gas
flames.
A Weaving C Singeing
B Sizing D De-sizing
The purpose of _______ is to remove the size from warp yarn of the woven fabric, both
41 for the reduced environmental hazards, and the lower costs this is a fundamental step
before any further treatment of the garment.
A Weaving C Singeing
B Sizing D De-sizing
________, is a chemical washing process carried out on fabric to remove natural wax
42
and nonfibrous impurities from the fabric including soiling and dirt.
A Singeing C Scouring
B De-sizing D Bleaching
43 In the stage of scouring, the color of the cloth is ______
A Naturally white C Grey tone
B Yellowish tone. D Silver tone
44 ______ is the process of adding color to the bleached fabric as per requirement.
A De-sizing C Scouring
B Dyeing D Bleaching
______ improves whiteness of fabric by removing natural coloration and impurities
45
from the fabric through a washing process.
A Singeing C Scouring
_______ is the process of applying color designs and patterns to the fabric. There are
46 different ways of doing because process is advanced such as digital way of working
through engraving screens is possible
A Singeing C Printing
In ________, different processes are applied to improve the look, performance,
47 shrinkage, or ‘hand’ (feel) of the fabric. In these processes include raising, calendaring
and sanforizing.
A Finishing C Winding up
B Completing D Closing process
48 Pakistan’s Garment Manufacturing is ________section of textile industry.
A Capital intensive C Semi-automatic based industry
B Labor intensive D Fully robotics-based industry
49 Pakistan’s Garment Manufacturing is divided into three major categories:
A Woven C Home textiles.
B Knitted D All of these
Acceptable Quality Limits (AQLs) are being applied. For example, AQL 4 means that
50
there should not be more than __________.
A 4.4 % defective pieces of sample selected C 4.0 % defective pieces of sample
selected
B 4.2 % defective pieces of sample selected D 4.08% defective pieces of sample
selected
53
Chapter No. 10 Industries of Pakistan – (Pharmaceutical Industry & Oil and Gas
Exploration)
Pakistan has a very vibrant and forward-looking Pharmaceutical Industry in which
1
growth of ________
A Growth of local companies is higher than the multinational companies
B Growth of multinational companies is higher than local companies
C Both are growing side by side
D None of the above
It is essentially a ______generic market with large number of new generic medicine
2
launched at_______.
A High cost C Low-cost
B Competitive cost D Higher unit price
The Pharmaceutical industry contributes approximately ______to the GDP of Pakistan
3
annually.
A 3% C 1%
B 4% D 2%
There are approximately 650 companies operating in the Pakistani Pharmaceutical
4
market, out of which _______are multinational companies.
A Less than 30 C Less than 10
B More than 50 D None of the above
Today Pakistan has about 759 pharmaceutical manufacturing units including those
5
operated by ______multinationals present in the country.
A 35 C 40
B 25 D 50
The Pakistan Pharmaceutical Industry meets around _____ of the country’s demand of
6
Finished Medicine.
A 90% C 70%
B 95% D 50%
In Pakistan’s Pharmaceutical Industry Local companies are growing but multinational
7
companies are merged in each other.
A True B False
There are around ________ actively marketed drugs in Pakistan sold at licensed
8
pharmacies on prescription.
A 10,000 C 20,000
B 11,000 D 9,000
In Pakistan over the many thousands of products mostly and there is a large segment of
9
_____e.g., multivitamins; pain, cold and flu relief.
A Over the Counter (OTC) products C Special drugs
B Under the Counter (OTC) products D Chemo drugs
10 Pharmaceutical sector in Pakistan is strictly regulated by the ________
A Pakistan Medical Counsel C Government
B Pakistan Dental Association D International Counsel of Medicine
DRAP controls the registration of new medicines and new manufacturing sites. DRAP
11
means
A The Drug Regulatory Authority of Punjab C The Drug Registration Authority of
Pakistan
B The Dosage Regulatory Authority of D The Drug Regulatory Association of
Pakistan Pakistan
12 DRAP also determines the _________of all medicines marketed in Pakistan
A Minimum Retail Price (MRP) C Minimum to Maximum Retail Price
(MRP)
B Maximum Retail Price (MRP) D None of the above
54
13 The Pakistani Pharmaceutical market is largely an ________ market
A In-of-pocket C Totally finance by government
B Out-of-pocket D Medical Insurance of everyone.
Pakistan____________, the Health Insurance industry is gradually evolving to provide
14
hospitalization coverage for the citizens.
A Does have a national health insurance cover
B Does not have a national health insurance cover
C Finance by US Aid
D Financed by United Nations Health Organization
__________ in health sector has also increased with several pharmaceutical companies
15
working with government and NGOs to provide necessary access to medicines.
A Public Private Partnership C UNCEF & Private Partnership
B UNO & Private Partnership D World Bank & Private Partnership
Pharmaceutical companies are geographically spread all over Pakistan. Pharmaceutical
16
production units in provinces tend to concentrate in major cities like _________.
A Karachi C Peshawar
B Lahore. D All of the above
Although the numbers reflect that__________________, but in terms of production,
17
capacity utilization, ________, Karachi.
A Majority of firms are in the of Punjab but volume and size of business is high in Karachi
B Majority of firms are in Karachi but volume and size of business is high in Lahore
C Majority of firms are in the of Baluchistan but volume and size of business is high in
Karachi
D None of the above
Sales in Pharmaceutical Industry of Pakistan the Medical Representatives are given
18 a_______. They call on doctors to communicate scientific product and disease
information, treatment efficacy, results of clinical studies etc.
A Only a fixe salary C Fixed salary and a variable incentive pay
B Per piece commission D None of these
Sales in Pharmaceutical Industry of Pakistan the Medical Representatives are given
19 targets in terms of ____________in their respective assigned territories, number of
scientific and promotional activities carried out as well as sales
A Number of calls that they make to stores C Number of calls that they make to
patients
B Number of calls that they make to doctors D Number of calls that they make to
medics
There are certain special payments made to DRAP for various purposes including:
20
which one is wrong.
A Central Research Fund: Annual levy of 1% of Profit Before Tax
B New Drug Registration Fees & Drug Registration Renewal Fees
C Drug Manufacturing License Fees
D Tariffs on Rotary Tablet Machine
Pharmaceutical companies make various kinds of payments to Healthcare Professionals
21 (HCPs)/Healthcare Organizations (HCOs) with respect to services obtained from them.
These payments include _______
A Honoraria for delivering lectures in C Participation in health awareness
B Conferences and symposia D All of the above
Finance Executives should carefully review all payments to HCPs. Purpose of such
payments should be clear to ensure that these payments are within_______________.
22
Payments to HCPs cannot be made to oblige or induce them to prescribe company’s
medicines and thereby increase sales.
A The confines of ethical marketing practices
B The confines of legal marketing practices
C The confines of regulations marketing practices
55
D None of the above
Reasons for growth opportunity into pharmaceutical industry are due to ________.
23
Which one is wrong?
A Pakistan’s large population with sub optimal access to quality medicines
B High disease burden offers growth opportunities to pharmaceutical companies
C Out of pocket medical services for which each individual has to pay
D Poor affordability and paying capacity of customer.
In Pakistan Pharmaceutical companies generally sell their medicines _______to their
24
distributors.
A On cash payment C On advance payment
B On credit D On credit or promissory note
A __________in any pharmaceutical company plays an increasingly important role in
communicating scientific information to HCPs in an objective and ethical manner. It
25
provides medical education on latest clinical research, treatment guidelines, new
medicines, their medical benefits to patients and any risks of side effect
A A Customer Relations Department C Medical Affairs Department
B A Supplier Management Office D A Public Relations Department
_______are undertaken to develop medical research evidence to understand efficacy of
26 new medicines in treating diseases. These are research studies that test how well new
medical approaches work on people.
A Hospital experiments C Clinical trials
B Experimental Design D Social trials
Pharmaceutical companies engage leading hospitals and approved Clinical Research
27
Organizations for clinical studies/trials on a specific medicine’s _____________
A Efficacy in treatment of diseases C Effectively and suitability of disease
B Efficiency in treatment of diseases D All of the above
Hospitals enroll volunteers and/or patients into small study groups depending on
28
medicine’s type and their development stage. Matter is related with ____
A Hospital experiments C Clinical trials
B Experimental Design D Social trials
No healthcare system in the world can deliver treatment and care to patients without
29
supply of quality medicines.
A True B False
Pakistan’s export potential could reach one billion dollars which is currently less than
30
200 million dollars in Pakistan. While neighboring countries growth is _____
A Double than Pakistan C Four times more than of Pakistan
B Triple than Pakistan D Ten times more than of Pakistan
Bangladesh and India have many Foods and Drug Administration (FDA) approved
31
plants. However, ________. This impedes our export potential in developed markets.
A We do have only one manufacturing plant that is FDA approved.
B We do have only two manufacturing plant that is FDA approved.
C We do have only three manufacturing plant that is FDA approved.
D We do not have a single manufacturing plant that is FDA approved.
Medical Affair Department focuses on developing customer and patient insights about
32
_____. Which one is wrong
A Disease prevalence, their prevention and cure;
B Translating evidence into meaningful information as well as communicating it to the
doctors.
C Information on the appropriate use of homeopathy medicines and vaccines are also
provided.
D All of the above
_______are undertaken to develop medical research evidence to understand efficacy of
33
new medicines in treating diseases.
A Clinical trials C Observational study
56
B Interventional study D All of the above
Each study answers specific scientific questions and tries to find better ways for
34 prevention, screening, diagnosis, or treatment of a disease. Clinical trials may also
______.
A Compare a new treatment to the one that is already available in the market.
B Compare a new treatment to the one that is already available in homeopathy
C Compare a new treatment to the one that is already available in Perso-Arabic
D None of the above
Pharmaceutical companies engage leading hospitals and approved Clinical Research
Organizations for clinical studies/trials on a specific medicine’s efficacy in treatment of
35
diseases. Hospitals enroll ________into small study groups depending on medicine’s type
and their development stage
A Prisoners and/or hostages C Volunteers and/or patients
B Repudiate persons and/or patients D Monkeys and/or Chimpanzees
Over the past half century, the petroleum industry has played a significant role in
36
national development by making _____ gas discoveries.
A Small indigenous C Large indigenous
B Large exogenous D None of the above
________, also known as Exploration and Production (E&P) sector, is associated with
37
exploring and producing hydrocarbons (crude oil and natural gas)
A Upstream sector C Mid-stream sector
B Downstream sector D None of the above
Oil & gas sector is among the most impactful sectors of Pakistan’s economy. The total
38 energy supply during 2019 was about 86 million tons of oil equivalent. To understand the
impact of gas contribution, indigenous gas is about ______ of the total energy supply.
A 60% C 65%
B 70% D 35%
Petroleum supply chain infrastructure in Pakistan starts from port facilities at Karachi.
39 Crude oil, white-oil products, Low Sulphur Furnace Oil (LSFO) are received at the
________.
A Gawader Port C Karachi Port
B Chabahar Port D Qasim Port
_______includes marketing and distribution of refined oil and gas to industrial,
40 commercial and residential end users such as power plants, petrol pumps, various
industries and household.
A Upstream sector C Mid-stream sector
B Downstream sector D None of the above
The supply chain of natural gas just_________, but it is relatively simple as compared to
41
the oil supply chain.
A Like oil starts from the gas fields C Unlike oil starts from the sea
B Unlike oil starts from the agricultural D Unlike oil starts from the drilling
fields
Gas explored and produced is transferred to two main gas utilities ________and
42
______via pipelines for further distribution to the end-consumers
A Sun West Gas Company Limited C Sui Northern Gas Pipeline Limited
(SWGCL) (SNGPL)
B Sui Eastern Gas Pipeline Limited D Sui Southern Gas Company Limited
(SEGPL) (SSGCL)
In comparison, the supply chain of imported LNG starts at the_______. The LNG
43 imported is regasified at the plants installed at the port. The re-gasified LNG is then
transferred via pipelines to the two utilities for further transmission
57
For exploration of gas or oil, access to the surface (land) is obtained from the owners of
44
the land which could be ____________. Pick two options
A Private land owners or C Sub-lease by Hawla
B Government D None of the above
For LPG and High Sulphur Furnace Oil (HSFO) are received at the Fauji Oil Terminal
45
at________ on arrival be sea from other countries.
For exploration of gas or oil, land is acquired via______, short term or long term. Need
46
two options to pick.
A Purchase C Sub-lease by Hawla
B Rental/lease D None of the above
During Exploration Phase, land is usually taken on short-term rental/lease, whereas, for
47 Development and Production Phase, it is either purchased or taken on long-term
rent/lease
A True B False
E&P activities in Pakistan are generally carried out in less populated and under-
developed areas, which are in need of necessities such as water, electricity, clinics,
48
schools and colleges. E &P companies have contributed for the last many years in the
following areas: _____ which one is odd.
A Provision of water resources for drinking and cleaning
B Primary and secondary schools and vocational training centers
C Building and managing small hospitals and dispensaries to provide health services to local
communities
D Vaccination against mental diseases such as stress and depression
Being a highly specialized industry with continuous technological advancements, it is
49
crucial to provide specialized _______ opportunities to staff.
A Mentoring and counseling C Training and development
B Counseling and coaching D Research and development
The oil and gas exploration being a highly technical industry dealing with
50 inflammable/combustible products, __________is of utmost importance for E&P
company.
A Health, Safety and Environment (HSE) C Training and development (T&D)
B Security & Assurance Environment D Research and development (R&D)
(SAE)
58
Mock
1. The interests are different from those of executive directors and senior executives: although
they are not affected by concerns about remuneration (bonuses and performance
incentives), power and status or job security. Which two are correct related with their roles
a) Cannot contribute to the strategic plan
b) To scrutinize the performance of the executive directors
c) To provide an external perspective on risk management
d) To deal with people issues, and resolution of conflicts is not their concerns related with day-
to-day management
2. Azeem Pvt. Ltd company sells its product throughout the region of KPK. Because of delay
in production and lack of shippers they are unable to supply the products on agreed time.
As this inefficiency may cause the reputation risk, therefore the BOD meeting is held to
discuss the issue. BOD decides to set the specific goal of improving efficiency. With which of
the following goal the company may by two options, and company can resolve the issue
a) Adding new shipper less with information logistic system
b) Add production facility
c) Lay of the redundant workers
d) More work on corporate social responsibility
3. Four traditional factors of production are common to all productive activity: natural
resources, labor (human resources), capital, and entrepreneurship. Many experts now
include _______ as a fifth factor, acknowledging its key role in business success.
a) Equipment and innovation
b) Techniques and process
c) Organization structure & system
d) Knowledge and information
4. In the board of directors of Farooq Int. Pvt. Ltd. Company BODs are concerns with mission
statement, according to them. A mission statement should be clear and short statement also
includes key questions to answer. Which of the following questions are included in a mission
statement?
a) What is our value to the customer?
b) What was our past?
c) What will our future be?
d) What will our business be?
5. Munir & Iqbal Ltd is a leading business confronted with high employee turnover ratio.
Most of the employees leave the company within a year of hiring. Munir & Iqbal Ltd has
decided to set the goal to fix this problem. By setting which of the following goal a company
may retain its staff?
a) Training for new employees within first 90 days on the job.
b) By holding meetings with the staff one-on-one basis.
c) Improving staff retention less than 4 employees leaving in 6 months
d) All of the above
6. In partnership, dissolution is always difficult because if a partner who owns more than___
% of share of the entity withdraws, dies, or becomes disabled the partnership must
reorganize or end.
a) 75
b) 50
c) 25
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7. In partnership all general partners have____________. In fact, ___________legal judgments
such as malpractice— regardless of who caused them
a) Unlimited liability for the debts of the business
b) All partners are considered liable for all partnership debts according to share
c) Any one partner can be held personally liable for all partnership debts
d) Limited liability for the debts of the business
8. Where there are a large number of external shareholders who play no role in the day-to-day
running of a organization, the organization described as:
a) Cooperative
b) Public limited company
c) Sole proprietorship
d) Partnership
9. Companies are owned by shareholders whereas public sector organizations are owned by:
____ and/or ______
a) Government
b) Individuals
c) Public or society as whole
d) Partners
10. To encourage Non-Executive Directors to operate in the best interests of the company, they
could
a) Be given a high basic salary
b) Receive bonuses based on both individual and company's performance
c) Be entitled to large payment on resignation
d) Given a fixed fee against services
11. H Ltd makes a variety of unrelated products, including bicycles, furniture and electronics.
It is aware that each of these products requires very different strategies and functions. H
wishes to use a structure that will allow for each product to managed separately, but wishes
to minimize its overall administrative costs.
Which of the following organizational structures would be most appropriate for H Ltd to
adopt?
a) Divisional
b) Entrepreneurial
c) Functional
d) Matrix
12. An ________________structure refers to a flexible workplace with a horizontal mode of
communication. Horizontal or flat methods of communication mean that employees share
their responsibilities in groups, mutual adjustment and teams and interact with different
departments, managers and colleagues to complete work successfully
a) Mechanistic organization
b) Bureaucratic organization
c) Organic organization
d) Informal organization
13. Consider the following statements:
1) Under the functional structure, each department operates as a strategic business unit.
2) The matrix structure will enable rapid decision-making within the organization.
Which of the statement is/are correct?
a) 1 only
60
b) 2 only
c) Both
d) Neither
14. Which of the following structures is best placed to address the need for co-ordination
between project teams in very complex situations?
a) Functional
b) Divisional
c) Matrix
d) Geographical
15. An employee is answerable to two bosses at a time is most likely to be a disadvantage for
which type of organization structure? And it is violation of _________ basic rule of
management
a) Entrepreneurial
b) Matrix
c) Multicity of command
d) Unity of command
16. An important advantage of using loans to finance investment is:
a) Loan interest payments can usually be suspended if profits are low
b) The timing of loan payments is often at the company's discretion
c) Loan interest is tax deductible
d) Banks will often not require security for loan advances
17. VDF plc is planning to raise finance to fund the launch of a new product. It is planning to do
this via an issue of new shares to the public. Which of the following I an issue that VDF may
ace if it proceeds with its plans to raise equity finance?
a) It will be forced to pay higher dividends in the future – event if the new product launch is a
failure
b) The share issue may dilute the control that the existing shareholders have over the company
c) VDF will require good quality assets to offer as security for the new issue
d) The issue of share is likely to reduce VDF’s corporation tax liability.
18. ________are _______that cannot be readily converted into cash within one year.
a) Non-current assets
b) Long-term assets
c) Short term assets
d) Quarterly assets
19. The assets that a company expects to use up, convert into cash, or sell within one fiscal year
or operating cycle.
a) A current asset
b) Liquid asset
c) A short-term
d) All of the above
20. An important aspect of financial management is the choice of financing methods for a
company’s assets. Companies use a variety of sources of finance and the aim should be to
achieve an efficient capital structure that provides:
a) A suitable balance between short-term and long-term funding
b) A suitable balance between equity and from debt in the long-term capital structure.
c) Funds raised through the sale of ownership in the business and borrowed funds
d) All of the above
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21. A _____and _____is, instead, meant to give a distribution of possible outcomes (i.e., it
describes all outcomes and gives some measure of how likely each is to occur
a) Perfect forecasting system
b) Probabilistic model
c) Deterministic system
d) Forecastable system
22. _________is when a computer processes a number of tasks that it has collected in a group.
a) Real time processing
b) Group processing
c) Batch processing
d) Sequential processing
23. Which of the following is the disadvantage of real time processing?
a) Information is more up to date therefore providing better management information
b) Increase ability for data to be online
c) Increased hardware capacity which increases costs
d) All of the above
24. A popular software integrates with your core business operations, like your inventory
tracking system, eCommerce payment gateway, and shipping and handling. You no longer
need to bounce through multiple software programs when you have the answers you need in
one place.
a) Manufacturing Resource Planning
b) Enterprise Resource Planning
c) Organizational Resource Planning
d) Strategic Resource Planning
25. MSS use the internal master database to perform high-level analyses that help managers
make better decisions. At the first level of an MSS is an information-reporting system,
which uses summary data ____________to produce both regularly scheduled and special
reports.
a) Collected by the TPS
b) Collected by the DSS
c) Collected by the EIS
d) Collected by the MRP
26. Suppose you are elected as home minister after your CA qualification. Your bureau is
awarding a construction contract to a firm owned by your brother of the home minister
while the organization is under investigation. If this construction award has the potential to
shape the outcome of the investigation, __________has occurred.
Which one is the most common term can be used to fill in the blank.
a) Undue influence
b) Conflict of interest
c) Personal interest
d) Competing interests
27. Sadia Nohaaz is facing an ethical dilemma. When deciding what his course of action should
be, he is concerned with making sure that the outcome of his decision will benefit the
greatest number of people.
Which approach to ethical decision-making is Sadia Nohaaz following?
a) Utilitarianism
b) Deontology
c) Virtue ethics
62
d) Corporate social responsibility
28. Which of the following is an approach to ethics which combines a concern for the law with
an emphasis on managerial ethical responsibility?
a) Just obey the law
b) Compliance based approach to ethics
c) Working according to industrial norms
d) Satisfying customers, supplier & employee
29. Farrah works in the sales tax section of the accounts department of BCD Co. When the
finance director is on holiday, Farrah notices that BCD Co has not been paying the correct
quarterly amounts to the authorities. Farrah had suspected this for some time and reported
to the BCD’s Co’s compliance officer and he advised to her to keep silent of this issue. She
dissatisfied and contacted to top management, she receives no reply from a long time and
finally she decides to contact the authorities to tell them about the fraud.
This disclosure is known as
What two words correctly complete the sentence?
a) Organizational accountability
b) Confidentiality breach
c) Corporate conscience
d) Whistle blowing
30. Modern view on Corporate Social Responsibility is:
a) It is a way to further a company's business and attract additional shareholders
b) It is necessary to reduce product liability claims
c) A company must give part of its profits to charity
31. Which of the following is not a factor to describe a target market segment?
a) Demography
b) Geography
c) Equality
d) Specialty
32. A brand owner may seek to protect proprietary rights in relation to a brand by registering
the trademark such that it becomes a “Registered Trademark.” Also, a firm or licensor can
also grant the right to use their brand name, patents or sales knowledge in exchange for
some form of payment
Related with ________
a) Brand property rights
b) Sale of Ownership of the brand
c) Brand ownership
d) Brand legality.
33. Sports cars, designer clothing, exotic perfumes, luxury watches, and famous paintings are
all examples of __________.
a) Shopping product.
b) Specialty product.
c) Convenience product
34. The personality of brand includes all the characteristics of the brand that represent the
business culture, its purpose, overall mission and vision and goals.
Matter is related with
a) Brand Personality
63
b) Brand characteristics
c) Brand attributes
35. Sales are the systematic planning, implementation and control of business activities to bring
together buyers and sellers. While marketing is a transaction between two parties where the
buyer receives goods (tangible or intangible), services and/or assets in exchange for money.
a) True
b) False
36. Human resource plan is a ________ consisted of the ideal duration of a human resource
plan is:
a) Three to five years
b) Below three years
c) Strategic plan
d) Tactical plan
37. _________ is the process of gathering and analyzing information about the content and the
human requirements of jobs, as well as, the context in which jobs are performed.
a) Job analysis
b) Job description
c) Job advertisement
d) Personnel specification
38. A person specification describes the personal attributes desired in a potential employee. It is
a companion document to a job description, describing the personal attributes being sought
from applicants to ensure that they are suitable for the role.
a) Job description
b) Personal specification
c) Job evaluation
d) Job analysis
39. When vacancies are filled by internal recruitment, the following methods may be used,
individually or together and which are not use for internal recruitment.
a) Performance reports and appraisals of individuals
b) List of potential employees who are ready for promotion may be invited to apply
c) The ‘in-house’ or company magazine
d) Social media (LinkedIn)
40. __________ is ‘the planned and systematic modification of behavior through learning
events, programs and instruction which enable individuals to achieve the level of knowledge,
skills and competence to carry out their work effectively in the current job.
Which word correctly completes this definition?
a) Conditioning
b) Training
c) Education
d) Development
41. _______ is any activity or group of activities that takes one or more inputs, transforms and
adds value to them, and provides outputs for customers or clients.
a) Transformation process
b) Value chain
c) Supply chain
42. Consider the following points
64
• Six sigma.
• ISO 9000 and
• ISO 14000
are related with _____
a) The industry standards to ensure the existence of sound quality procedures.
b) Quality control standards in brief
c) Related with Quality Management System
d) All of the above
43. Updates are made continuously, rethinking on piece-by-piece, enabling the product to be
delivered to customers better and improvement in every step.
a) Development by fits and starts
b) Gradual development
c) Continuous development
d) All of the above
44. Which of the following are incorrect statements?
a) Mass-customization means manufacturing many identical goods at once.
b) Mass-production means goods are produced using mass-production techniques, but only up to
a point.
c) Customization of products means a customer can select features like color, design,
functionalities, add-on components
d) Customize production gives options to make a more unique item rather than a mass produced
one.
45. In which of the given characteristics, we should use the mass production?
a) Huge amount of production is required
b) Similar products or homogenous product to be produced
c) Customer is choice is varied in every case
d) Required unique features in the product
46. Given are the reasons of dull and stagnant growth of textile industry, one option is wrong,
identify which one
a) Limited number of value-added products
b) Low usage of manmade fibers
c) Absence of modern management practices.
d) Abundant skilled labor
47. ________is a process in which cotton fibers are separated from the seeds and wastes such as
leaves. The raw material for this tool is seed cotton (phutti) and its finished product is cotton
bale.
a) Cotton ginning
b) Cotton spinning
c) Cotton waver
d) Cotton mover
48. Fabric ______is the process of winding fabrics into clean, stretch-free _____ form for easy
packaging and transportation.
a) Folding & Packing
b) Rolling & Packing
c) Compressing & Packing
d) Labeling & Packing
65
49. It is the stage of fabric inspection that follows the defect mapping and cutting process.
Inspection of fabric is generally done on basis of 4 Point system (American system)
according to which ______
a) Per 100 sq. yards are less than 10
b) Per 100 sq. yards are less than 116
c) Per 100 sq. yards are less than 20
d) Per 100 sq. yards are less than 30
50. _____is the process of removal of sizing chemical material on fabric for avoiding
environment hazard, anyhow greige fabric is sized as part of weaving.
a) Weaving
b) Sizing
c) Singeing
d) De-sizing
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ITB Assignment October 2023

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